Activists quieter in first half of the year as political uncertainty hits
European businesses could breathe a sigh of relief as activist investors opened fewer campaigns in the first half of 2019.
The number of demands made by activists in Europe was more than 14 per cent lower over the period compared to last year, according to figures from Activistmonitor.
Read more: Just Eat faces pressure as Cat Rock says investors back calls for merger
Over the half, 24 new shareholder activist campaigns were launched, down from 35 the year before. Meanwhile the number of demands made by activists dropped from 77 to 66.
The intelligence unit put the drop down to a more unstable political climate, under-performing stock markets and an increase in private negotiations between different parties.
“Activists are therefore increasingly taking stakes in less risky companies in which they are more certain to not lose money, but still can generate upside,” said William Mace, Activistmonitor’s assistant editor.
But chief executives and boards will be holding their breath as the data shows that six of seven campaigns launched in the first half of 2019 were started in the second quarter.
Read more: Activist investor Cat Rock turns up the heat after calling on Just Eat to start merger talks
Not unusually Elliott Management was the most busy, launching four new campaigns. But Petrus Advisers made more demands than any other activist in its quest to change practices at Ophir Energy, CA Immobilien, Immofinanz and Wienerberger.
Cat Rock Capital put pressure on Just Eat to consider combining with a “well-run industry peer”, leading to the merger with Takeaway.com.