Box’s battle with Starboard Value shows that sometimes, sorting out differences with an activist investor can last for years – even a settlement does not put companies in the clear. Box struck peace with Starboard last year for three board seats, but the activist initiated a full proxy fight on the cloud storage company this week, saying it was disappointed with the progress and is seeking more seats. Box responded with a lengthy press release outlining its financial progress and refreshed board leadership. Activist funds are usually in and out over the span of a few quarters but in Box’s case, Starboard has been there since 2019. KKR’s arrival as a White Knight last month appears to only have fanned the activist flames.
In other news, BlackRock is caught in a palm oil pickle. The fund supported a palm oil related shareholder revolt last year at P&G (the commodity is omnipresent but not environmentally friendly) – but now investors are asking BlackRock to take a similar stance across its portfolio – on the other side of the world. At the center of this issue is Astra International, the Jardine Matheson subsidiary with heavy palm oil interests in Indonesia. BlackRock owns a big stake in Astra, and some investors want the fund to take action against some of the damage caused by palm oil farming.
Finally, “Vote No” campaigns are a low-cost way to embarrass a company and its board nominees, but the tactic is more optic than surgical. It’s a way to agitate without launching a director slate. CtW Investment Group took its vote no campaign to five Geo directors and in the end, the REIT’s shareholders trounced the effort and voted “yes” for the slate. Sometimes, you get what you pay for.
Have a great weekend,
Mike and Joel
