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Why Shareholder Activism is Growing at Public Companies, and How it Works

June 22, 2018

The Washington Business Journal features commentary from Morgan Lewis partner, and leader of the firm’s shareholder defense practice, Keith Gottfried in an article on growing shareholder activism at public companies. In the piece he notes that nearly every industry has been targeted by shareholder activism, and that activists will especially target companies they feel are not pursuing opportunities to unlock shareholder value. “The beauty of the activism is that an activist investor gets in there without paying a premium — they just pay whatever the stock is trading on the open market,” he tells readers. “They can exit on the open market or maybe they can get the company to put itself into play, and they can sell their shares pursuant to a transaction,” he says, adding “and they get the premium when the company is sold.”