Dan Loeb labels activist investors a ‘stain’ as Third Point chair quits
Dan Loeb, the boss of a New York hedge fund, has called activist investors targeting his London-listed investment vehicle a “stain” on the city.
Steve Bates, a former US equity analyst and JPMorgan executive who has been Third Point chair since 2019, today announced he would be stepping down with a company statement saying that “circumstances have rendered his continued service as a director of the company untenable.”
A company announcement said Bates was forced to step down after receiving personal threats from activist investors during meetings with Asset Value Investors, which owns a ten per cent stake in the company, and Staude Capital.
Loeb called the activist investors a “stain on institutional investors” and said their “juvenile antics smack of desperation and inexperience”.
Third Point released a statement on Bates’ resignation which said “one of the activists resorted to making personal threats against Steve Bates, namely that should he refuse to accede to their proposals, they would attack him in other business areas.”
“This naturally raised a business conflict for Mr. Bates — if he continued as chair of TPIL, he would be subject to behaviour which would impede the carrying out of all his responsibilities and duties, including those he owes to the company,” the statement continued.
Loeb said “Steve Bates’ resignation is loss for all shareholders” as he called out the activists.
“The behavior by these so-called “activists” is a stain on institutional investors who attempt to engage constructively with boards and management teams. Being a successful activist requires moving on when shareholders reject your plans rather than resorting to underhanded tactics. These juvenile antics smack of desperation and inexperience,” Loeb added.
Loeb has caused a stir with his own antics as an activist investor. The American businessman has bought a large stake in Shell to pressure the company into breaking itself up and instead focussing on renewable energy.
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