Core Insights - HoldCo Asset Management, LP has released a follow-up presentation to the Board of Directors of Columbia Banking System, Inc., highlighting the need for protective covenants due to failed gambles solely borne by owners [1] Company Overview - HoldCo Asset Management, LP is based in Fort Lauderdale, Florida, and manages approximately $2.6 billion in regulatory assets [2] Investment Position - HoldCo disclosed ownership of common stock in Columbia Banking System, Inc., indicating an economic interest in the price of these securities [1][2]

Core Insights - The article discusses the competitive landscape of the investment trust sector in London, highlighting the strategies of activist investors like Daniel Loeb and Joe Bauernfreund, who focus on acquiring shares of companies trading at discounts to their liquidating values [1][2][3]. Group 1: Investment Strategies - AVI Global Trust, managed by Joe Bauernfreund, specializes in buying shares of companies and investment trusts that are undervalued, particularly those with significant assets [3][4]. - The trust has achieved an 11.8% compound annual return over 40 years, outperforming the ACWI global stock index by 2.4 percentage points [6]. - The article suggests that Japan presents a promising market for value investing, with small-company Japanese stocks expected to outperform other asset classes according to GMO's forecasts [6][13]. Group 2: Activist Investor Dynamics - Daniel Loeb's recent merger of his London-listed trust with an offshore insurance company faced opposition from dissident shareholders, leading to increased cash payouts to them [2][15]. - Joe Bauernfreund's approach involves targeting holding companies controlled by wealthy families, which often trade at significant discounts to their liquidating values [4][11]. - The article notes that many investors overlook the value in complex holding companies due to their perceived uninvestability [11]. Group 3: Specific Company Examples - News Corp is highlighted as a prime example of a holding company trading at a 41% discount to its liquidating value, with significant assets like the Wall Street Journal and a 61% stake in REA [5][11]. - Vincent Bolloré's conglomerate and Vivendi are also mentioned as trading at discounts, with Bolloré's complex corporate structure allowing for control over a diverse asset pool [10][11]. - Christian Dior, a holding company with a 2% public float, trades at an 18% discount to its net asset value, with AVI Global Trust holding some of its shares [12]. Group 4: Market Reactions and Future Outlook - The article notes that the French market regulator's ruling on Bolloré SE's entanglement with Vivendi has led to a 14% increase in Vivendi's share price [14]. - AVI Global Trust's strategy includes periodically buying back its own shares to maintain shareholder satisfaction and mitigate the risk of forced liquidation [18][19].

In order to grow our operation, we need investment. So now it's a kind of balance. We reserve some portion for new investment, for growth.And the the other part of it, we return our profit to the our shareholders. And our current market cap is not so satisfactory. So that's one of the points.And we decided to increase the distributions and also the share buybacks. Do you have a target in mind when you think about your market cap. At the moment, PBR is below 1.0%.So then I think at least our company's value, ...

Core Insights - The LA CorpGov Forum took place on September 4, 2025, in Los Angeles, focusing on various topics relevant to corporate governance and investment [1][2]. Group 1: Event Overview - The forum was hosted in collaboration with Edelman Smithfield and attracted over a hundred participants, including institutional investors, corporate executives, and USC alumni [1]. - The event featured a mix of panels, fireside chats, and networking opportunities [1]. Group 2: Key Topics Discussed - Major topics included IPOs, shareholder activism, governance in Los Angeles, media and entertainment, sports business, private boards, and international business [2]. - Specific sessions included discussions on maximizing value from private boards and the role of boards in shareholder activism [3].

Core Insights - Elliott Investment Management L.P. holds a significant investment of over $2 billion in Workday, Inc. and expresses confidence in the company's leadership and growth potential [1] - The firm believes that the plan announced at the Financial Analyst Day will enhance Workday's operating model and capital allocation framework, driving long-term value creation for shareholders [1] Company Overview - Workday is recognized as a unique software franchise with industry-leading growth potential and best-in-class customer retention [1] - The management team, including CEO Carl Eschenbach and CFO Zane Rowe, has made substantial progress in recent years [1] Investment Management Context - Elliott manages approximately $76.1 billion in assets as of June 30, 2025, and is one of the oldest funds under continuous management [2] - The investor base of Elliott includes pension plans, sovereign wealth funds, endowments, foundations, high net worth individuals, and employees of the firm [2]

Core Insights - The fifth annual Palm Beach CorpGov Forum will take place on November 5-6, 2025, at the Palm Beach Lake Pavilion, featuring panels and networking events [1][2] - The event is expected to attract around 300 attendees, including institutional investors, board directors, family offices, attorneys, investment bankers, and key advisors [2] - The forum will cover various topics including Private Equity, IPO Execution, Shareholder Activism, and Industry Panels on Cybersecurity, Real Estate, Blockchain, AI, and Sports [5][6] Event Details - The forum will run from 1 PM to 5 PM each day, followed by networking receptions from 5 PM to 7:30 PM [1] - The event will be digitized into a report and published by CorpGov and its content partners, including Yahoo Finance and Bloomberg [2] Speakers - Keynote speaker will be Josh Frank, Partner and Co-Investment Officer at Trian Fund Management, along with other notable speakers from various sectors [6]

Company Overview - PepsiCo is one of the largest consumer packaged goods companies globally, with a diverse portfolio of iconic brands including Lay's, Doritos, Cheetos, Gatorade, and Pepsi-Cola [1][4] - The company operates in various segments, including Frito-Lay North America, Quaker Foods North America, and PepsiCo Beverages North America, with North America accounting for 60% of revenue and international markets 40% [5] Performance Analysis - Despite its scale and brand strength, PepsiCo's stock has underperformed, losing nearly $40 billion in market capitalization over the past three years and trailing the S&P Consumer Staples Index by 169 percentage points over the last 20 years [5][13] - Strategic missteps in the North American business, particularly in the PBNA segment, have contributed to this underperformance, including the decision to keep bottling operations vertically integrated rather than refranchising [6][7] Strategic Recommendations by Elliott Investment Management - Elliott Investment Management, which holds a $4 billion position in PepsiCo, has proposed a comprehensive plan to reaccelerate growth through improved operations, strategic reinvestment, and enhanced accountability [3][14] - Key recommendations include refranchising the bottling network to improve operating margins and optimizing the product portfolio by reducing the number of SKUs and divesting underperforming brands [14][15] - Elliott emphasizes the need to reinvest in core soda franchises and halt aggressive growth strategies in the PFNA segment, which has seen a deceleration in top-line growth [16][17] Financial Insights - PepsiCo's capital expenditures rose from $3.3 billion in 2018 to $5.2 billion in 2022, with expectations of $5.3 billion in 2024, despite a contraction in FLNA sales [11][12] - The company's operating margins in the PBNA segment have decreased from 30% to 25%, reflecting the impact of increased costs and strategic missteps [12] Market Position and Valuation - PepsiCo currently trades at an 18x P/E ratio, below its ten-year average of 22x, indicating a significant discount compared to historical performance [13] - Elliott believes that effective implementation of its plan could provide at least a 50% upside to shareholders, highlighting the potential for long-term value creation [18][20]

Core Insights - An activist investor, Elliott Management, has acquired a $4 billion stake in PepsiCo, indicating that the company is underperforming and changes are expected quickly [2][3] - The letter from Elliott suggests that Pepsi's stock could increase by over 50% if the company implements the hedge fund's recommendations [3] - The current environment for activist campaigns has shifted, with a more collaborative approach emerging between activists and companies, reducing the likelihood of confrontational tactics [4][5][12] Company Performance - PepsiCo is at a critical juncture, with an obligation to enhance financial performance and reclaim its status as an industry leader [3] - The market generally supports activist investors, as evidenced by the increase in Pepsi's stock price following the announcement of Elliott's stake [6] Activist Investor Landscape - The activist investment industry has grown significantly, with managers now overseeing close to $230 billion, a 35% increase since 2022 [6] - A Barclays review indicates that settlements between companies and activists have risen, with board seats allotted to investors increasing by 16% [7] - Many activist campaigns are resolved without public confrontation, reflecting a shift in strategy among both activists and targeted companies [12] Industry Trends - The current state of shareholder activism suggests that it is becoming easier for activists to influence large public companies, with a notable example being the ongoing campaign against Pepsi [13] - The complexity of Pepsi's operations may present challenges for Elliott's campaign, but the fund is currently adopting a cooperative approach [13]

Texas Law Updates - Texas Senate Bill (SB) 1057 aims to curb shareholder activism by introducing stricter requirements for submitting proposals at shareholder meetings for companies opting into higher thresholds [1] - SB 1057 introduces three new requirements for shareholder proposals, including ownership threshold, holding period, and solicitation requirement [1] - SB 2411 expands officer exculpation and streamlines approval of mergers and major transactions [3] Shareholder Proposal Requirements (SB 1057) - The ownership threshold requires shareholders to hold the lesser of $1 million in market value or 3% of the corporation's voting shares [2] - Shareholders must continuously own the shares for six months prior to and including the date of the shareholder meeting [2] - Shareholders must solicit holders of shares representing at least 67% of the voting shares entitled to vote on the proposal [2] Tesla Implications - Tesla has not publicly stated whether it will opt into the higher thresholds defined by SB 1057 [1] - The current shareholder proposal for a possible xAI investment in the November 6, 2025 proxy is governed by existing bylaws and SEC Rule 14a-8, not the new Texas thresholds [4] - Reincorporating in Texas allows Tesla to leverage a more business-friendly legal environment and reduce regulatory and shareholder burdens [3]

Summary of J.P. Morgan's 2025 Mid-Year M&A Outlook Industry Overview - The report focuses on the M&A (Mergers and Acquisitions) landscape, particularly in Europe, with a cautiously optimistic outlook for H2 2025 and 2026 [1][4][6]. Key Insights - **Global M&A Activity**: - Global M&A volumes increased by 27% year-over-year (y/y) in H1 2025, reaching $2.2 trillion, with 72% of these volumes consisting of deals greater than $1 billion, marking a 20-year high [4][6]. - EMEA (Europe, the Middle East, and Africa) M&A volumes rose by 11% y/y, although the number of deals remained below the 10-year average [4][6]. - **Market Dynamics**: - The DACH region (Germany, Austria, and Switzerland) saw a significant increase, with announced volumes doubling y/y [6][7]. - The report highlights a shift towards larger deals and an increase in take-privates and cross-border transactions [4][6]. - **Activism Trends**: - Activism is on the rise amid market volatility, with M&A being a primary focus for activists, constituting 29% of US campaigns and 23% of EMEA campaigns [2][4][6]. M&A Outlook - **H2 2025 Expectations**: - Continued growth is anticipated in sectors such as financial institutions and diversified industries within EMEA [4][6]. - The report notes that geographic valuation differences and a focus on nearshoring are expected to sustain M&A activity [9]. - **Challenges**: - Investor confidence is being affected by trade, macroeconomic, and geopolitical uncertainties, leading to currency fluctuations and recession fears [9]. - Regulatory scrutiny is increasing, particularly for foreign buyers in critical sectors, which may extend deal timelines [9]. Additional Insights - **Cross-Border M&A**: - Cross-border M&A activity increased by 24% y/y, with the US, Australia, and the UK being the top target countries [9]. - **Sponsor Activity**: - There were 146 take-privates in H1 2025, compared to 274 for the entire year of 2024, indicating a notable increase in private company opportunities [9]. - **Regulatory Landscape**: - Regulatory bodies in the UK, US, EU, China, and Japan are increasingly reviewing deals involving foreign buyers, which may impact deal certainty and timelines [9]. This summary encapsulates the critical points from J.P. Morgan's 2025 Mid-Year M&A Outlook, providing insights into the current state and future expectations of the M&A landscape, particularly in Europe.