Ad Hoc Communication Advisors and AMO analyzed 148 of the largest deals carried out by investors activists in Europe and the United States over the past three years. The data collected shows the relative success of activist funds that only in 18% of cases, in the US, complete, in whole or in part, the required changes in the governance, management or strategy of the target company. A percentage that it rises to 44% in Europeon a much smaller sample.
According to the report, the most successful target in Europe has been to replace top management: 88% of requests to change Chief Executive Officers obtained a positive response in Europe, compared with a total of 20% of similar requests in the United States that have subsequently shown full or partial success.
The European activist funds were much less convincing when they tried to obtain seats on the Board of Directors or to modify the corporate governance of the target companies: only 18% of these requests were totally or partially successful in Europe, against 48% in the United States. Activists in the US have also been more successful in boosting shareholder returns: 51% of these requests were fully or partially successful, compared to 25% in Europe.
Attachments: .~lock.PRESS RELEASE ACTIVIST FUNDS.doc#
