4/29/2029

Shareholder Activism in Asia Drives Global Total to Record High

Nikkei Asia (04/29/29) Shikata, Masayuki

Activist shareholders had their busiest year on record in 2024, with the Asia-Pacific region making up a fifth of campaigns worldwide, pushing some companies higher in the stock market and spurring others to consider going private. The worldwide tally of activist campaigns rose by six to 258, up by half from three years earlier, according to data from financial advisory Lazard. Campaigns in the Asia-Pacific tripled over that period to 57, growing about 30% on the year. Japan accounted for more than 60% of the regional total with 37, an all-time high. Activity is picking up this year as well in the run-up to general shareholders meetings in June. South Korea saw 14 campaigns, a jump of 10 from 2023. Critics say South Korean conglomerates are often controlled by minority investors that care too little about other shareholders. Australia and Hong Kong saw increases of one activist campaign each. North America made up half the global total, down from 60% in 2022 and 85% in 2014. Europe had 62 campaigns last year. The upswing in Japan has been fueled by the push for corporate governance reform since 2013 and the Tokyo Stock Exchange's 2023 call for companies to be more mindful of their share prices. The bourse has encouraged corporations to focus less on share buybacks and dividends than on steps for long-term growth, such as capital spending and the sale of unprofitable businesses. Demands for capital allocation to improve return on investment accounted for 51% of activist activity in Japan last year, significantly higher than the five-year average of 32%. U.S.-based Dalton Investments called on Japanese snack maker Ezaki Glico (2206) to amend its articles of incorporation to allow shareholder returns to be decided by investors as well, not just the board of directors. Though the proposal was rejected, it won more than 40% support, and Glico itself put forward a similar measure that was approved at the following general shareholders meeting in March. U.K.-based Palliser Capital took a stake last year in developer Tokyo Tatemono (8804) and argued that more efficient use of its capital, such as selling a cross-held stake in peer Hulic, would boost corporate value. Activist investors are increasingly seeking to lock in unrealized gains from rising land prices, reaping quick profits from property sales that can go toward dividends. Companies in the Tokyo Stock Exchange's broad Topix index had 25.88 trillion yen ($181 billion at current rates) in unrealized gains on property holdings at the end of March 2024, up about 20% from four years earlier. After buying into Mitsui Fudosan (8801) in 2024, U.S.-based Elliott Investment Management this year took a stake in Sumitomo Realty & Development (8830) and is expected to push for the developer to sell real estate holdings. This month, Dalton sent a letter to Fuji Media Holdings (4676), parent of Fuji Television, calling for it to spin off its real estate business and replace its board of directors. Activist campaigns have sparked share price rallies at some companies. Shares of elevator maker Fujitec (6406) were up roughly 80% from March 2023, when it dismissed Takakazu Uchiyama -- a member of the founding family -- as chairman under pressure from Oasis Management. The rise in demands from activists "creates a sense of tension among management, including at companies that don't receive such proposals," said Masatoshi Kikuchi, chief equity strategist at Mizuho Securities. Previously tight cross-shareholdings are being unwound, and reasonable proposals from minority investors are more likely to garner support from foreign shareholders. Some companies are going private to shield themselves from perceived pressure. Investments by buyout funds targeting mature companies in the Asia-Pacific were the highest in three years in 2024, according to Deloitte Touche Tohmatsu. Toyota Industries (6201) is considering going this route after facing pressure from investment funds last year to take steps such as dissolving a parent-child listing with a subsidiary and buying back more shares. Toyota Industries holds a 9% stake in Toyota Motor (7203). The automaker "may have proposed having [Toyota Industries] go private as a precautionary measure," said a source at an investment bank.

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1/16/2027

Dealmakers See More Retail Mergers and IPOs in 2026 After Tariffs Sidelined M&A Last Year

Reuters (01/16/27) Summerville, Abigail

Dealmakers predict an uptick in mergers and IPOs for retailers and consumer goods companies this year after punishing tariffs on imports to the United States had sidelined activity in the industry for the first half of 2025. Several national restaurant and convenience store chains are primed for IPOs, along with organic baby food company Once Upon a Farm, Hellman & Friedman-backed auto repair company Caliber Holdings, and Bob’s Discount Furniture, which is owned by Bain Capital, according to more than two dozen CEOs, M&A advisors and private equity investors who attended the ICR Conference in Orlando, Florida this week. “The number of high-quality companies that are in queue to go public in 2026 is higher than we’ve seen since 2021,” Ben Frost, Goldman Sachs' (GS) global co-head of the consumer retail group said in an interview. “The question is does that mean more will go public? If it does, private investors will see the ability to exit investments again (in a) regular way, which will help (private equity) activity.” Frost was one of the more than 3,000 attendees at the annual gathering, where executives from Walmart (WMT.O), Shake Shack (SHAK.N), and Jersey Mike’s were among presenters while bankers, lawyers and private equity investors spent much of their time brokering deals and landing clients behind the scenes. The upbeat mood was a marked shift from last spring after U.S. President Donald Trump's "Liberation Day" tariff announcements sent markets skidding and killed or stalled several consumer and retail deals. The second half of the year saw a resurgence in activity that brought with it several mega deals, including Kimberly-Clark’s (KMB.O) nearly $50 billion deal to buy Kenvue (KVUE.N), announced in November. "(Companies) are still really focused on growth and synergies. They’re looking at bigger deals than they’ve been willing to do for the last number of years. The back half of last year was the start of that,” Frost said. Kraft Heinz (KHC.O) announced in September it would split into two companies to unwind its 2015 merger, shortly after Keurig Dr Pepper (KDP.O) had agreed to buy JDE Peet’s for $18 billion with plans to split the coffee and non-coffee beverages into separate companies. In apparel, Gildan Activewear (GIL) bought Hanesbrands for $2.2 billion. Investors could also spur more deals and corporate breakups in the sectors, Audra Cohen, co-head of the consumer and retail group at law firm Sullivan & Cromwell, said in an interview at the conference. Corporate agitators have taken recent stakes in Lululemon Athletica (LULU.O) and Target (TGT.N), but aren't yet pushing for M&A. Lululemon hosted a morning yoga class and its management team met with analysts and investors at the conference. Meanwhile, private equity buyers are beating out companies for some deals, Manna Tree Partners co-founder Ellie Rubenstein told Reuters. Her firm sold its cottage cheese brand Good Culture to a larger consumer-focused firm L Catterton just last week. “A lot of these brands have gotten lost (inside big corporations) and the consumers don’t like it. You may see a lot of corporate carveouts this year,” Rubenstein told Reuters in an interview after her keynote address. She interviewed her billionaire father and Carlyle co-founder David Rubenstein, 76, on stage at the conference. The father-daughter pair contrasted their portfolios, pointing to Carlyle’s history of investing in fast food chains like McDonald's (MCD.N) and KFC Korea while Manna Tree saw big returns from investments in healthier food brands like pasture-raised egg producer Vital Farms (VITL.O) and Good Culture.

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10/2/2026

Why Washington’s Proxy-Adviser Crackdown Could Reshape Corporate Governance

Pensions & Investments (10/02/26) Degen, Courtney

The Trump administration, U.S. Securities and Exchange Commission (SEC), and Republican lawmakers are pursuing several measures targeting proxy advisers and the broader proxy-voting process, potentially reshaping corporate governance. The largest advisers, Institutional Shareholder Services (ISS) and Glass Lewis, face increased scrutiny over their recommendations, methodologies, and potential conflicts of interest. The SEC has asked a federal court to compel ISS to provide information about its recommendations and votes, while ISS argues that its activities are protected speech. Separately, an SEC proposal would rescind Rule 14a-8, potentially making shareholder proposals more difficult and expensive by leaving their treatment primarily to state law and company governing documents. A congressional bill would require periodic SEC studies of proxy advisers and annual voting reports from institutional investors that use them. Industry participants warn that regulatory and litigation risks could discourage smaller proxy advisers from entering the market, reduce the availability or independence of proxy advice, and threaten the voting infrastructure provided by major firms. They also argue that these changes could reduce shareholders’ influence over corporate decisions. Supporters of greater oversight contend that proxy advisers should face stronger transparency and accountability requirements. Overall, the article describes the measures as part of a broader debate over the balance of power between corporate management and shareholders in U.S. public companies. Critics say the combined initiatives could narrow shareholders’ ability to propose resolutions, influence votes, and participate in governance, while increasing management’s relative control. The outcome could affect how institutional investors evaluate proposals and exercise voting rights across public companies.

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10/2/2026

Shareholders Push Companies to Help Retain Proxy Proposal Rights

Bloomberg Law (10/02/26) Hutchinson, Drew

While the U.S. Securities and Exchange Commission (SEC) pursues an end to mandatory votes on corporate shareholder proposals, investor advocates are pushing companies themselves to step in and help preserve existing rights. The burgeoning pressure on companies ranging from Microsoft Corp. (NASDAQ: MSFT) to Oracle Corp. (NYSE: ORCL) comes as the SEC seeks to repeal an 84-year-old regulation compelling companies to hold annual votes on shareholder resolutions. States will have the option to fill a regulatory gap if the rule goes through, but in the meantime, stockholders are going straight to the source. Independent shareholder advocate James McRitchie wrote to Costco Wholesale Corp. (NASDAQ: COST) last week asking the company to oppose the SEC's plans in public comments, according to an email seen by Bloomberg Law. Similarly, investment firm Zevin Asset Management contacted its 30 portfolio companies mid-September urging them to speak out publicly against the proposal, express concerns to the agency's commissioners, and maintain the status quo, according to sustainable investing director Marcela Pinilla. Meanwhile, the New York State and New York City comptrollers' offices also called on every publicly traded company to keep accepting the proposals. Other campaigns began earlier. Noting SEC leaders' increasing condemnation of the proposal process, the National Legal and Policy Center's shareholder arm submitted resolutions earlier in the year at a half-dozen companies. One was withdrawn after Microsoft agreed in August to keep accepting proposals that meet existing stock ownership requirements for one year, regardless of what the agency does. Two similar proposals will see a vote Oct. 13 at Procter & Gamble Co. (NYSE: PG) and Nov. 18 at Oracle. Shareholder proposals can address anything from board practices to diversity, equity, and inclusion. Companies saw an increase in environmental and social justice proposals in the early 2020s following the death of George Floyd, but that trend has since dropped off. In the 2026 proxy season, governance proposals — which ask for measures like independent board directors or certain shareholder rights — were king. Shareholders see Rule 14a-8, the regulation in question, as a civil, productive way to put key issues in front of companies. Hedge funds have the clout to call up CEOs, but smaller proponents rely on the rule for access, said Paul Chesser, director of the NLPC’s Corporate Integrity Project. “There’s relatively few of us,” he said. “They don’t have to deal with a lot.” Chesser’s organization has holdings in a couple dozen more companies where it could submit proposals before next spring’s proxy season, when most large companies hold their annual meetings. Future resolutions would probably focus on preserving more aspects of the current federal rule, not just the minimum stock ownership requirements it pursued at Microsoft and Oracle, he said. Whether companies will embrace shareholders’ pleas for action is up in the air. After asking Costco to submit comments to the SEC opposing the rollback, McRitchie received a response from the company’s general counsel, John Sullivan, according to an email seen by Bloomberg Law: “Thanks for the feedback. We are evaluating the SEC proposal and your comments.” “The near term is just going to be a lot of issuers taking different paths,” said Brent Trame, partner at Thompson Coburn LLP. Ultimately, companies will probably keep including at least some shareholder proposals if the existing rule vanishes, said Frank Zarb, partner at Proskauer Rose LLP. Companies already got a taste of the shareholder proposal process without the SEC. The agency decided last November to stop settling disputes between shareholders and companies about which proposals were required to go to a vote — a policy it said it will continue until further notice. Some businesses operated during the 2026 proxy season as they had in every other year, while others seemed more comfortable excluding resolutions, said Timothy Smith, senior policy adviser at shareholder group Interfaith Center on Corporate Responsibility. It will be the same disparity if Rule 14a-8 disappears, he said. The SEC views state legislatures and courts as the proper venues to handle shareholder proposal rules, an agency spokesperson said in a recent press briefing. What states do will also dictate how companies function going forward. Some states could create a mandatory shareholder proposal process, while others could let companies opt in — in which case some would and others wouldn’t, said Benjamin Edwards, a law professor at the University of Nevada, Las Vegas. Two-thirds of Fortune 500 companies are incorporated in Delaware. But SEC Chairman Paul Atkins has questioned whether the state’s laws guarantee the right to non-binding shareholder proposals, and even invited companies before last proxy season to get a Delaware legal opinion stating so. No one took him up on it. Delaware’s Corporate Law Council, which advises the general assembly on business code updates, has been studying and deliberating the implications of threats to Rule 14a-8 for months, Secretary of State Charuni Patibanda-Sanchez said in an emailed statement. “Given Delaware’s expertise in corporate governance, we are the best jurisdiction able to propose a solution that meets the needs of the market,” she said. The best shareholder proposal framework for companies is sort of like wine, Edwards said: “What is a better fit for one company and their situation may not be a better fit for another.”

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10/1/2026

U.S. Companies Adapt to Stewardship’s ‘New Normal’ After SEC Changes

Responsible Investor (10/01/26) Webb, Dominic

The U.S. Securities and Exchange Commission’s (SEC) updated guidance on ownership filings caused a degree of panic among large investors when it was published last year. The regulator said large shareholders or groups that engage on certain issues and link voting decisions to company actions may lose their passive investor 13G protection, and trigger more onerous 13D filing requirements for activist investors. Investors responded to the guidance by canceling meetings on extremely short notice – even in the middle of activist proxy fights. Some would even show up and not say a single word for the entire meeting, according to market participants. The radical reordering of the U.S. engagement rulebook then continued, with the SEC stepping back from responding to no-action requests on shareholder proposals, and proposing the rescission of federal rules governing proposals altogether. Investors and shareholder advocates have made their views clear on the changes, but corporate advisers say the landscape could also be unhelpful for companies themselves. Chris Hayden, North America managing director at shareholder engagement and proxy solicitation firm Georgeson, says he is not sure the problem the SEC attempted to solve on 13D/G was actually a concern for corporates. “I think investors and issuers had gotten to a point where there was a high level of comfort having meaningful engagement and you didn't see a lot of trading votes for certain activities,” he says. And in areas where many corporates would like changes, such as the shareholder proposal landscape, the new environment has created unwelcome uncertainty. The SEC is consulting on whether to rescind Rule 14a-8, governing the inclusion of proposals on corporate proxy materials. “To be frank, most companies don't view the shareholder proposal process too positively,” says Michael Mencher, special counsel at law firm Cooley. “A lot of companies are frustrated by the politicization of it in recent decades on both sides of the spectrum. It feels like, for many companies, they're in a 'can't win' scenario no matter what they do.” However, he adds that there is a “better the devil you know” dynamic among firms, who have built structures around the current rules, which have been in place since World War II. Aside from Texas, which implemented a state law allowing companies to set filing thresholds, no company or state has set its own rules for shareholder proposal filing, leaving a number of question marks should rescission go ahead. In Delaware, where around two-thirds of S&P 500 companies are incorporated, the Council of the Corporation Law Section of the Delaware State Bar Association has said it will integrate the proposals into its annual review of Delaware’s corporate statutes. “Boards are not sure how exactly the landscape will shift,” says Iliana Ongun, co-head of the public M&A practice at law firm Milbank. “There’s likely to be a meaningful period of uncertainty as we see whether states pass legislation that provides a clear path to inclusion or exclusion of shareholder proposals in the proxy statement, or whether those states pause and leave room for private ordering.” In the absence of state or federal rules, market participants expect that companies may adopt rules for filing in their own bylaws, known as private ordering. One possible template for this came in 2010, when the SEC attempted to allow shareholders to include their own director nominees in a company’s proxy statement if they collectively held more than 3 percent of shares for at least three years. While the rule was struck down in court, many companies adopted proxy access in their own bylaws after receiving shareholder proposals requesting they do so. The National Legal and Policy Center, a prominent filer, has already filed at Microsoft (NASDAQ: MSFT), Procter & Gamble (NYSE: PG), and Oracle (NYSE: ORCL), requesting them to adopt a policy allowing proposals on their ballot subject to certain ownership thresholds and compliance with other aspects of 14a-8. According to a document seen by Responsible Investor, Microsoft has agreed to continue tabling resolutions for its 2027 annual meeting in exchange for a withdrawal. A spokesperson for the firm said that the agreement “provides Microsoft and its shareholders a clear and predictable process for the next proxy cycle.” Procter & Gamble is recommending a vote against, as the request comes in response to regulatory changes that are yet to occur, but its AGM in October will provide an early pulse check of investor sentiment on the topic. Cooley’s Mencher warns that voluntary approaches could prove to be tricky for companies to implement. “You’re telling us we have to turn our corporate secretary into a private SEC that has to be judge and jury on these proposals and then justify itself? “It’s just a business companies don’t want to get into.” If ownership thresholds stay the same, Mencher expects firms that introduce private ordering to give themselves the ability to manage the number of proposals they have on their proxy card every year, and avoid proposals “that are really a distraction and counterproductive.” Many companies’ bylaws already permit shareholders to submit business for consideration at an annual meeting independently of Rule 14a-8. This is subject to certain advance notice and procedural requirements, and has rarely been invoked as Rule 14a-8 offered an easier and cheaper avenue, according to a note by law firm Paul Weiss. “Companies should review their bylaws now,” says Milbank’s Ongun. “Boards should work to ensure that their advance notice bylaw provisions are defensible and appropriate for the company’s governance profile, as well as being well drafted.” Companies and investors have had more time to adapt to the SEC’s 13D/G changes following the initial disruption. “In many instances, the investor has basically said it’s up to the issuer to set the agenda,” says Georgeson’s Hayden. “If there’s a hot topic, the issuer has to broach the topic.” The changes have also reduced transparency for companies as to investors’ thinking. Last year, DWS paused its U.S. engagements until September, and avoided sending post-AGM letters to U.S. companies explaining votes against management due to “regulatory uncertainties.” Similarly, RBC Capital Markets said in a note that investors have softened language in their voting policies, stripping out details on possible voting decisions and issues of concern, and altogether reducing detail. “Less transparency into specific voting decisions means that voting outcomes may become less predictable for corporates,” the bank’s analysts said. The SEC recently issued updated interpretations on some of the 13D/G conversations, aiming to allow large shareholders to have conversations initiated by issuers and to seek clarification on certain issues. Carmen Lu, a partner in the M&A and activism defense practice at Paul Weiss, says these updates create “unofficial safe harbors” for issuer-shareholder discussions, and indicate that the SEC may have been surprised by the strong reaction to the original changes. Regardless of the avenues available to investors to raise their concerns, “shareholder engagement isn’t going away,” says Ongun. “I think the question is whether it gets channeled through a structured process at the state level, or it shifts into less predictable channels like litigation and proxy contests. “Vote-no campaigns, open letters, books and record demands, fiduciary litigation – those all remain as potential tools for activists to use to further their agendas.” Investors have already engaged specific directors at firms they believe are taking advantage of the SEC’s pullback from no-action requests, and RBC Capital Markets analysis found that companies identified by the Interfaith Center on Corporate Responsibility as having weak arguments to exclude proposals saw elevated opposition and significant votes against specific directors. However, Lu warns that vote-no campaigns may draw more scrutiny to director performance but “very rarely succeed in ousting a director.” “I don’t think these campaigns really move the needle in most situations,” she says. “When you launch too many vote-no campaigns, you also lose credibility and the market stops noticing. It’s like the boy who cried wolf.” The changing market environment is also introducing uncertainty for firms, with the rise of customized voting reducing the influence of proxy advisers’ house views. “ISS and Glass Lewis’ influence is waning, but still meaningful,” says Lu. “The transition phase over the medium to longer term towards customized voting is going to create a fair amount of uncertainty, and it's going to be hard to know for sure how investors are going to vote.” Meanwhile, AI is increasingly being integrated into stewardship. Investors and proxy advisers are upping their use of machine learning tools to read proxy statements and collect information – and even to make voting recommendations, says Hayden from Georgeson. “I think issuers need to start thinking about their proxy statement and is it AI friendly, AI readable?” he says.

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9/29/2026

Nidec’s Unending Turmoil Raises Specter of Breakup or Takeover

Bloomberg (09/29/26) Takahashi, Nicholas; Kiyohara, Mari

Nidec’s (TYO: 6594) prolonged accounting crisis, a potential new ¥1 trillion ($6.4 billion) impairment charge and the replacement of its CEO have triggered a stock rout, making the once-formidable blue chip a much-weakened takeover target after years of turmoil. A writedown of that scale, as reported by a local magazine this week, would mark one of the biggest such charges by a Japanese company. The company announced Tuesday the departure of CEO Mitsuya Kishida, 66, after less than three years on the job. He’ll be replaced by Chief Technology Officer Michio Kaida, 70, effective immediately. With shares falling 20% this week and now worth about one-third of their 2021 peak, the ongoing chaos increases the odds of Nidec becoming a buyout or breakup candidate. Oasis Management already owns 8% of the manufacturer, and has pushed for stronger governance and measures to unlock value. The crisis puts Nidec at risk of joining Olympus (TYO: 7733), Nissan (TYO: 7201), and Toshiba in the ranks of Japanese companies that fell from grace due to management upheaval and weak corporate governance. “The more battered the company, the more attractive it would be as a takeover target,” said Julie Boote, an analyst at London-based research firm Pelham Smithers Associates. “Confidence in management has also taken a beating, so the timing to put a bid in is perfect.” But one potential stumbling block to any deal involving Nidec’s future may be its hard-driving yet tarnished founder, Shigenobu Nagamori, who remains a top shareholder. Nagamori, 82, who built Nidec through aggressive acquisitions and an unforgiving work culture, stepped down as CEO in 2024 — before the first inkling of the accounting scandal that engulfed the company was disclosed the following year. He relinquished his last remaining title at Nidec in February, but still exercises sway at the company through his 8.3% stockholding. Kishida’s departure was announced a day after the Diamond report, which caused Nidec to issue a statement that it was considering changes to leadership and a large impairment charge. The manufacturer is scheduled to restate some of its past results on Wednesday. The smoldering accounting scandal involves Nidec subsidiaries in Italy, Switzerland and China, as well as its automotive inverter business. The company has acknowledged years of improper balance sheet practices, including overstating raw-material and inventory values, misstating customs declarations, booking government grants as revenue and capitalizing labor costs to defer expenses. The Tokyo Stock Exchange has already warned of a potential delisting of its shares if Nidec fails to prove its internal controls have improved. The stock’s recent removal from the benchmark Nikkei 225 and Topix equity indexes has only deepened investor anxiety. “This accounting misconduct issue and the response has taken an extremely long time from the outset, which has repeatedly made me think ’something isn’t right here,’” said Ryoutarou Sawada, a senior analyst at Tokai Tokyo Intelligence Laboratory. “The market wants the company to properly resolve these issues once and for all.” The motor maker’s market value now stands at around ¥2.7 trillion, down from roughly ¥8 trillion in 2021. While the collapse in Nidec’s valuation has lowered the bar for a possible bid by an investor for more control over Nidec’s fate, an outright takeover would still require a considerable amount of money to pull off. Given that a ¥1 trillion impairment would weaken a balance sheet with about ¥1.7 trillion in equity, a leveraged buyout would also be difficult to pull off. One plausible scenario could involve a partial breakup like the one that befell Toshiba after an accounting scandal and Westinghouse’s collapse a decade ago. The Japanese electronics conglomerate sold off its medical unit, then later its prized memory-chip operations to raise cash. Toshiba still faced years of investor pressure over its strategy, governance and asset sales before shareholders ultimately rejected a full split and a Japan Industrial Partners-led buyout took it private in 2023. A Nidec breakup would most likely involve the automotive business, which has seen shrinking profits, while the appliance and industrial, precision-motor, machinery and components divisions remained profitable. Selling, spinning off or restructuring the supplier of car motor parts would help shore up the value of the stronger businesses. Either way, unresolved accounting issues make it difficult for any takeover or breakup action, according to Naoki Fujiwara, a senior fund manager at Shinkin Asset Management. “Unless the impact of this type of accounting fraud becomes somewhat clear, it will be quite difficult for other parties to make a move on them,” he said. Another challenge is Nidec’s classification as a “core sector” company critical to national security and the development of domestic industries under the Foreign Exchange and Foreign Trade Act, with foreign investors required to submit prior notification when acquiring its shares. A big question is how Oasis may seek to shape Nidec’s future. The Hong Kong-based investor, which disclosed its stake earlier this year, has blamed the accounting crisis on a culture distorted by “excessive pressure” and the domineering influence of its founder. Even so, Nidec’s business is “highly competitive and possesses significant growth potential,” Oasis said in March. Its precision-motor technology and entrenched market positions remain attractive to investors, according to Ikuo Mitsui, a fund manager at Aizawa Securities. “If the company can emerge from this as a sufficiently clean organization, there will still be investors drawn to its technology and market share,” he said. Drama has always defined Nidec. During its era of hypergrowth in the two decades prior to the pandemic, revenue doubled around every six years and Nagamori wasn’t shy about telling investors that he knew best how to run the company. He challenged them to fully accept his hands-on management style and strategy, or go away and put their money elsewhere. His relentless quest for growth and streak of acquisitions fueled a rise in Nidec’s market value — making him a billionaire and the company one of Japan’s most respected businesses. Nagamori’s penchant for rolling up smaller companies in the motor-making supply chain impressed investors as he seemed to squeeze out greater profits every year. Even as his age crept beyond 70, Nagamori cast aside a series of executives he groomed to be potential successors, ostensibly after deeming them unworthy of the CEO role. But in 2020, he seemed to have finally settled on a successor, anointing Jun Seki as CEO. But the founder, who remained chairman, soon clashed with the former Nissan executive, calling that choice his “biggest mistake” after ousting Seki in 2022. The following year, Nidec struggled with weak demand for electronics and automotive parts, forcing the company to report a 48% drop in operating profit — a disaster by Nagamori’s exacting standards. In April 2024, Nagamori tapped Kishida, who had led the mobile communications business at Sony Group (NYSE: SONY), to lead Nidec as CEO. The same year, Nidec made a hostile bid for machine tool maker Makino Milling Machine (TYO: 6135), widely seen as a play to recapture some of the old Nagamori merger magic. Nagamori and Kishida abandoned the takeover attempt in May 2025, just a month before the first batch of accounting irregularities emerged.

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9/28/2026

A $120 Billion Gold Drama Hits Denver, and Elliott has a Starring Role

Australian Financial Review (09/28/26) Macdonald, Anthony

Large-cap M&A is part theater, part sport; a battle of corporate strategy and finance wrapped up in the holier-than-thou notion of shareholder value creation, that’s as much about egos and power than anything else. The best ones are dramatic. South African gold giant Gold Fields (NYSE: GFI) has served up a cracker. Already one of the biggest gold miners in Australia, it wants to buy the ASX’s biggest gold stock, Northern Star Resources (ASX: NST), combine their respective West Australian mines, mills and developments, and create a new globally relevant miner worth about $120 billion. While it’s big, what makes it interesting is the drama. Northern Star has underperformed, lost a bunch of executives, has a couple of new directors starting this week, a new chief executive coming on next week, and globally renowned Elliott Investment Management on its tail with a 6.2 per cent stake wanting to make a big bucket of money. The Northern Star/Elliott tensions were supposed to have settled down with the senior management changes, but Gold Fields’ offer could set them straight back off again. Bloomberg leaked news of the bid over the weekend, right ahead of a big annual gold shindig in Denver attended by the world’s biggest miners and their investors. Gold Fields and Northern Star both have speaking slots, and you’d think investors will barely ask them about anything else. Northern Star revealed it had since rejected the bid – it didn’t like the valuation or structure – only for Gold Fields to hit back with its show-stopper. It said combining the two could create $US4 billion to $US5 billion ($5.7 billion to $7.1 billion) in value, shared by both Northern Star and Gold Fields shareholders and mostly stemming from their combined West Australian mines and mills that could be re-routed. The first Northern Star knew about the huge synergies claim was when Gold Fields released its Denver conference presentation late on Monday. If it is accurate – and it’s impossible to know that without due diligence – it is a compelling reason to combine the two companies’ West Australian portfolios, if not the whole lot. You could say they were better prepared for the leak. That synergies number is even more compelling when you consider that gold miners fish in a small pool of institutional investors, and their biggest investors are the same passive funds that buy stock for gold-themed ETFs. They tend to be management team agnostic, and just want the most value for whatever assets their companies own. The $U.S.4 billion to $U.S.5 billion number is pretty fuzzy, but it’s too big to ignore. Gold Fields didn’t explicitly say it, but it seems to revolve around the fact the two companies have eight of the top 20 gold mines in Australia, all within a 280-kilometer radius in Western Australia. Gold Fields said 92 per cent of Northern Star’s Australian reserves were within 100 kilometers of the South African’s processing infrastructure. Ore from Gold Fields’ Agnew, for example, could be processed at Northern Star’s Thunderbox. That synergies number is unique – Newmont/Newcrest Mining, the last big Australian mega-deal, didn’t have anything like it. It will linger in investors’ minds, even if they know to think of M&A synergies claims as guilty until proven innocent, and are warned this one’s got no confidential information or due diligence behind it. Northern Star chairman Michael Chaney called the bid opportunistic, while Gold Fields said its interest pre-dated Elliott’s arrival and followed six months of talks. Both can be true. Chaney, advised by Goldman Sachs (NYSE: GS), pretty quickly rejected the offer. But what we now have is a starting price – JPMorgan (NYSE: JPM)-advised Gold Fields offered $27 a share – and a stirred-up investor in Elliott that has been pretty forward about its intentions to see Northern Star sold to create value from the start. Elliott was quick to tell Northern Star to engage. It would be cleaner for Gold Fields if Elliott wasn't on the scene, but it could be helpful that it is. Its pitch is that Northern Star has lost a lot of executives, has grown to a scale where it is dealing with projects and capital decisions that are much bigger than it is used to, and it doesn't have the bandwidth to deal with it. Gold Fields will try to make Northern Star investors doubt their company's ability to turn around operational performance and make the most of a strong gold price. Gold Fields submitted its bid a fortnight ago, giving Northern Star two weeks to address it ahead of the Denver conference. Gold Fields would have offered a mix of shares and cash, leaving Northern Star with one-third of the combined group and Gold Fields investors with the rest. While the Western Australia synergies are the easy bit to understand, Northern Star has concerns about Gold Fields’ South African and Ghana mines and whether investors want the “jurisdictional and operational risks.” Northern Star also wants to give incoming CEO Suresh Vadnagra the chance to start the turnaround and potentially get the share price to $30, to sell to Gold Fields at $40. While Chaney’s the sort of chairman to try to take the heat out of an M&A battle, this one promises to be spicy. It’s another reminder that when big investors like Elliott turn up, action follows – whether courted, warranted or not. Putting Gold Fields and Northern Star together would create the second-biggest gold producer globally based on 2025 production numbers and the largest producer in Australia by far, according to Citi (NYSE: C) analysts. It would be a shame for the ASX to lose Northern Star, an ASX 20 member, so soon after losing Newcrest. Gold Fields said it would seek an Australian listing to do the deal, similar to Newmont/Newcrest. However, some of Northern Star’s stock would be lost to Gold Fields’ more liquid listing in New York.

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