Wednesday, 22 October 2014
Last updated 15 hours ago
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.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...