Lecture at Paris-Dauphine University – The impact of activist funds’ actions on value – 26 June 2018
Activist funds do not constitute a specific legal category and are characterised solely by their behaviour. They acquire shares with the aim of encouraging the company to take measures likely to significantly improve its market value. Their demands can vary widely: the sale of unprofitable businesses, a demerger of the company, a change in management, and so on. Most often, they remain minority shareholders without direct representation on the board and seek to influence the annual general meeting by aligning with other shareholders to push through their decisions. Some view their actions as generally positive. They are said to actively exercise their shareholder rights – which is generally seen as highly beneficial – and to invigorate both the company and its management, thereby promoting its development. For others, they are primarily speculators interested in maximising short-term value. To bring a more scientific perspective to this debate, it seemed necessary to organise a conference that sought not only to better understand these funds but also to measure their actual impact.
The regulatory environment for activist funds by Sophie Schiller, Professor of Private Law at Paris-Dauphine
The impact of activist funds’ actions on value by Maurice Nussenbaum, Professor of Finance at Paris-Dauphine
Round table: Are activist funds an opportunity or a threat to the economy?
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