Activists have launched 37 campaigns in the first quarter of 2021, beating last year’s first quarter, and topping 2019’s first quarter, according to data from Lazard.
Angela Weiss/AFP via Getty ImagesAfter a year of hiding, activist investors have emerged.
There were 37 campaigns launched in the first quarter of 2021, beating last year’s first quarter by 12 new campaigns, and topping 2019’s first quarter by three, according to data from Lazard.
Energy and industrial companies are particularly feeling the heat, accounting for 41% of activist capital deployed, data show. Retail and consumer products accounted for a combined 25% of capital deployed.
The return of activists comes after many campaigns were put on hold or never launched at all last year as companies and activists alike contended with the Covid-19 pandemic. As the economy recovers, however, activists have returned to old targets and new opportunities in companies that have lagged in the recovery.
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Merger-and-acquisition activity continues to be a motivator. More than half of the campaigns with an M&A component have activists trying to block or sweeten the deal, up from 34% previously. For example, activists tried to block the takeover of Extended Stay America (ticker: STAY) by Blackstone Group (BX) and Starwood Capital Group, arguing the $19.50 offer price was too low.
Activists have also been trying to get seats on the boards of companies including Exxon Mobil (XOM) and eHealt h (EHTH). Sixty-six seats are still “in play” at 18 companies as of the end of the first quarter, says Lazard.
Social distancing notwithstanding, activists surely plan to elbow their way in.
Write to Carleton English at carleton.english@dowjones.com
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