Even those in charge of listed corporations have bosses, however much they dislike thinking of their shareholders that way. So most chief executives hope to avoid the attention of "activist" investors- mostly hedge funds that specialise in shaking up listed companies in the hope of a share-price jolt. Sadly for those who dwell in corner offices, activists are getting brasher. Not only do they have growing cash piles to deploy, they are now comfortable taking on even the biggest companies. Today's activists are the descendants of the corporate raiders and asset-strippers who helped enliven the 1980s. Like their forebears, they target companies with sleepy managers, too much idle cash or ill-fitting divisions that might be lucratively spun off. The stakes they take in their targets tend to be small: typically 5% and in larger companies often much less. But funds often enlist the support of other shareholders to badger management for reforms. If that fails, a messy fight can ensue. Nasty words are traded in leaked letters or, better still, on cable television.
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