Investors called as activist investors always have big mission of fixing the mismanaged. They are able to point of companies’ major or minor problems and have the targets of fixing them. Stakeholders who act as shareholder activists are individuals from private equity firms, hedge funds, and wealthy individuals of investors.
Carl Icahn is known to be an investor activist, his mother said he had the spirit of Genghis Khan, reported The Economist.
But people’s impression might be different. Bill Ackman for example, American investor and hedge fund manager mentioned him as a bully who cannot stand against anyone better than him. This happened when two of them were fighting over a nutritional supplement business, Herbalife. For most people in his boundary, they agree that he is chief executives’ worse nightmare.
This time, early in 2022, Mr. Icahn seems to put his concern in McDonald. But before he announced his concern in the Wall Street Journal, a special documentary about his life was published. On February 20th, he urges fast food suppliers to improve their treatments, especially for pregnant pigs. Mr. Icahn is being peculiarly unusual regarding to his sudden affection to pregnant pigs.
Mr. Icahn’s strategy majorly involves buying undervalued companies’ sizeable stakes. Then he will seek for management shift as well as cost cutting focus. Sometimes, if managers refuse, he will launch revolt on social media campaigns. He will stir public opinion and get his own board members. His method, namely ‘Icahn lift’ has led to a great size of sell out profits.
Apparently, Mr. Icahn as an investor activist only owns $50.000 from $186 million from company’s share. But McDonald agreed to his concern about pregnant pigs. A decade before in 2012, he refused suppliers who use cramped crates for 16 weeks pregnant pigs. So far McDonald has shown performance decrease since pandemic. This spring, shareholders will vote. Mr. Icahn might not get what he wants this time, although with the support of Icahn lift.
