|Saturday, December 13, 2014
While the majority of proxy contests are still waged at companies that many would categorize as small-caps or micro-caps, activist shareholders continue to set their sights on larger targets. In recent years, shareholder activists have demonstrated that large-cap companies are far from immune from shareholder activism. While large-cap companies still account for a comparatively small portion – approximately 5% – of activists’ total investments, the headlines are replete with stories of well-known, highly-respected, large-cap companies that have been targeted by activist investors. Some estimate that last year, more than a third of new investments by activists targeted companies with market caps over $2 billion and last year the number of companies worth more than $10 billion that were targeted by activist investors was almost twice as high as it was in 2012.