Monday, 26 January 2015
Last updated 1 hour ago
May 30 2008 | 2:00am ET
Fresh off its groundbreaking victory in Japan, activist hedge fund Steel Partners has received a rude awakening back at home.
The New York firm on Thursday saw its bid to more than double its stake in insurer Conseco Inc. firmly declined. Carmel, Ind.-based Conseco explained that such a move “is not in the interest of all shareholders” and would reduce its “financial flexibility.”
Steel, which owns a 9.8% stake in Conseco, had wanted to up its stake to as much as 22%. The hedge fund has pushed Conseco to improve its return of equity, arguing that it has been “slow to implement the strategic review process.”
Conseco rejected that claim in a letter to Steel, writing that it took the strategic review seriously, and “we strongly disagree with the suggestions to the contrary.”
Earlier this week, a Steel-backed effort to oust most of the board of directors of Japanese wig maker Aderans Holdings succeeded, the first major victory for an activist hedge fund in Japan.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…