The panel discussed the increasing ability of hedge fund and other activist shareholders to influence a corporation’s management and board of directors, focusing on the interaction between the corporation and the activist shareholder. From a hedge fund’s perspective, communication and access are key: Blocking access to requested information about the company or forbidding communication with key members of management or the board of directors is often a precursor to a proxy contest with an activist shareholder. Alternatively, a company that is prepared to respond effectively to contact from a hedge fund or other activist shareholder is significantly better positioned to manage the demands of such shareholders and generate a positive outcome for the company.
The session was moderated by Foley Partners Phillip Goldberg and John Wilson as well as Richard Grubaugh of D.F. King & Co., Inc., Gordon McCoun of FD/Ashton Partners, Emily McNeal of UBS Securities LLC, and John Palmer of PL Capital LLC.