Founding Partner Paul Caminiti Offers Insights On Shareholder Activism at Roth Conference
Founding Partner Paul Caminiti joined Michael Fein of Kingsdale Advisors and Leonard Wood of Sidley Austin on the shareholder activism panel at the 34th Annual Roth Capital Partners Conference in Orange County, CA, which brought together over 500 companies to discuss market trends.
After a lull in activism during 2020 and 2021 due to an unspoken acceptance that it was “bad form” for investors to engage in aggressive activism during the pandemic, the panel agreed that activism is now back on the table and that companies need to be prepared to engage with activists who may be “circling and saber rattling.”
The panel discussed how numerous changes, particularly the new SEC rule requiring universal proxy cards, have made the barrier to entry for activists lower than ever. “Nothing is routine anymore,” Fein said of historically uneventful shareholder gatherings, highlighting the increased risk unexpected activist action.
Caminiti stressed the importance of engaging with activists from the outset and working to avoid unfavorable outcomes. Fewer than half of proxy fights get to contentious shareholder votes – and to avoid getting there “you have to have a respectful dialogue with them out of the gate, if you’re going to get a constructive resolution,” Paul said.
Read more about the comprehensive insights from the Shareholder Activism Panel in Mergermarket.
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