A large advertising firm was approached by an activist about merging with another, smaller firm citing consolidation trends in the industry as a driver for the strategy.
Unbeknownst to the activist, the ad firm had already considered the combination internally, having predicted an activist proposal about a merger might come along.
The company's management took the initiative to explore the possibility of an acquisition; an important step to help mitigate activist fallout.
This proxy season, instead of looking for ways to repel an activist proposal, consider a counterintuitive tactic: embrace the activist mindset.
While there were fewer activist proposals overall in 2018, says law firm Gibson Dunn in its client letter on shareholder proposal developments, the...