Welcome to Shareholder Fight Club

LIVE commentary from two ESPN rejects on the fights that matter to you and your money

Forget the first rule… talk about us

The main events. The fights of the century(ish). Our weekly coverage of matches that move markets. In the ring today:

Luxury Smackdown!

Macy’s Revamps for Ring Return: Still fresh to the proxy fight scene, Macy’s is bringing out the big guns against investors Arkhouse Management Co. LP and Brigade Capital Management LP.

Investor Stakes: Arkhouse has their sights set on controlling Macy’s board, nominating nine new directors, and offering $6.6B for the company in March (up from a $5.8B offer in January).

Highlights: Macy’s hits back with what they’re calling “A Bold New Chapter”. Bold, indeed, they’re aiming to monetize at least $600M in assets and expand Macy's luxury brands, Bloomingdale’s and Bluemercury, with 45 new stores.

NS in the Ring!

Norfolk Southern has been challenged by Ancora Holdings, an activist investor with a track record of taking on freight and logistics companies.

Ancora took a roughly $1 billion stake in NS and is pushing for a major management overhaul and board control. They nominated eight candidates for NS’ 13-member board, and they are proposing new leadership roles and other changes aimed at enhancing shareholder value. A pretty common move, but tried and true.

Sure Ancora’s got the experience, but associations representing railroad shippers express concerns that focus on short-term profits could harm long-term service improvements.

In any case, only one fighter can travel on those tracks to the championships…

Weekly Warfare:

• The Walt Disney Company (yes, that one) has been at war with Nelson Peltz (activist invest, Trian Fund Management, who is seeking a Board seat) since January of 2023.

  • Newest Maneuver: Blood is thicker than water. On February 29th, Walt’s grandchildren and brother wrote open letters to shareholders voicing support for current CEO Bob Igner and management. They called Peltz and other similar investors “wolves in sheep’s clothing”. On brand with the whole fairy tale thing, we like it.

• Etsy (e-commerce company) is engaged by Elliott Management (fund manager and veteran activist investor) as it struggles with increased competition, marketing costs, maintaining marketplace quality, and more.

  • Raised Stakes: Elliot acquired a 13% stake in Etsy, becoming its largest investor, and secured a board seat. We’re expecting some strategic changes, cost-cutting, operational improvements, the works.

Updates In the Space:

• SEC Referees NRSROs in Annual Report

  • The SEC has released its annual report on credit rating agencies to Congress.

  • Read the full report here

• SPAC disclosure rules finalized

  • In January, the SEC released some finalized rules aimed at improving investor protection in special purpose acquisition companies (SPACs) and their mergers with private companies.

  • Among new requirements are more disclosure about conflicts of interest, compensation, and potential risk.

  • Regarding transparency in mergers, the rules also establish minimum waiting periods for distributing information to shareholders (i.e. investors are promised some time to think before they vote on the merger)

_{Disclaimer: Please note that the content provided here is intended solely for entertainment purposes. The information, opinions, and discussions presented are not meant to be taken as investment advice, financial guidance, or professional opinions. The views expressed are for recreational and informational purposes only and should not be construed as recommendations or advice for any investment or opinions. This content should not be considered representative of the firms mentioned in any capacity. Viewers should always conduct their own research and consult with a qualified professional before making any investment decisions. Enjoy the content, but remember, it's just for fun!}