Battling Hedge Fund Activism Costs Target Company Millions

Nov 19 2007 | 8:04am ET

Japanese companies are batting 1.000 against activist hedge funds, but those successes can exact a heavy price.

Worcestershire sauce maker Bull-Dog Sauce Co. said Friday that it cost ¥2.1 billion (US$18.9 million) to fend off a US$260 million hostile bid from hedge fund Steel Partners.

The charge sent the company to a ¥1.93 billion (US$17.4 million) loss in the six months through September, compared to a ¥491 million (US$4.4 million) profit in the year-earlier period.

Still, Bull-Dog said it was worth it.

“We concluded that Steel Partners’ acquisition would hurt our company’s corporate value,” Director Koichi Sato said.

In August, the Supreme Court of Japan rejected Steel Partners’ bid to block Bull-Dog’s poison pill, which cut the hedge fund’s stake in the company by two-thirds by issuing new acquisition rights to existing shareholders, but buying Steel’s. At the time, Bull-Dog said the victory would result in a ¥980 million (US$8.8 million) loss for the fiscal year ending in March.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.