Unhedged Commentary: What Incumbent Boards in Activist Campaigns are Doing Wrong

By Christopher P. Davis

Recent hedge fund activist campaigns against the companies in which they are invested have resulted in the predictable annual display of last minute offers from cornered boards to these activists. Prominent examples include energy giant Hess first offering to split the CEO and chairman roles, and later offering two board seats to hedge fund firm Elliott Management Corporation, before soon thereafter capitulating in its settlement with Elliott.

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