Source: Fortune.com
Summary
When activist investors approach a company, boards often resort to defensive tactics that can harm the negotiating process. A new article examines 10 common tactics that can frustrate activists, such as “listen only” meetings, slow-rolling discussions, leaking information, and making unprofessional comments. These tactics can damage trust, escalate tensions, and undermine the company’s credibility. Instead, boards should focus on fostering a climate of respect and engaging in constructive dialogue to achieve a mutually beneficial outcome.
Our Reading
The announcement sounds familiar.
Boards and management teams are often advised to engage in defensive tactics when faced with activist investors. However, these tactics can have unintended consequences, such as damaging trust and escalating tensions. The article highlights 10 common tactics that can frustrate activists, including “listen only” meetings and leaking information. By understanding the impact of these tactics, boards can increase their chances of a constructive engagement and a mutually beneficial outcome.
Activist investors are not the enemy, but rather significant shareholders with potentially value-creating perspectives.
Author: Evan Null
