Essential Intelligence for Modern Investors

Grizzly Research alleges the tire maker earns more profit from Russia than investors realize and faces potential sanctions risks. Shares in Pirelli fell sharply after short seller Grizzly Research alleged the Italian tire maker was misleading investors over its Russian revenues and may have undisclosed ties to state-linked entities. The stock dropped more than 13% in the hours following the report’s release, before recovering after the company issued a statement rejecting the

The lawsuit marks the first state-led legal challenge against OpenAI and could help shape the future regulation of AI. Florida has become the first U.S. state to sue OpenAI, alleging that the company misled users about the risks associated with ChatGPT and seeking damages and a court order requiring changes to the company’s business practices. The lawsuit, filed by Florida Attorney General James Uthmeier, also names CEO Sam Altman, raising the prospect of personal liability f

Transaction follows Skydance's controversial Paramount takeover, marking the latest in streaming battle. Paramount has sought EU antitrust approval for its proposed acquisition of Warner Bros Discovery, advancing a deal that would create one of the world's largest media and entertainment companies as legacy media companies race to compete in the streaming era. The filing marks the latest step in a $110 billion transaction that would combine a vast portfolio of television netw

Proposed rule change could unlock vast new capital source for alternatives. U.S. retirement savers could soon be able to allocate portions of their 401(k) plans into private credit and cryptocurrencies if a new Department of Labor proposal passes. According to the recent proposal, the regulation would create a “safe harbor” framework to protect employers from legal liability when including alternative investments in retirement plan options. Employers would be required to foll

Buybacks and dividends generate stronger shareholder outcomes, study finds. Board seats, CEO departures and strategic reviews are often viewed as hallmarks of successful activist campaigns, but new research from JPMorgan suggests they do not consistently generate superior, long-term shareholder returns. Some campaigns that ousted CEOs or launched strategic reviews were actually linked to negative alpha over subsequent one- and two-year periods, according to a study from JPMor

A small group of repeat activists generates market-beating shareholder returns. Activism is increasingly dominated by a small group of experienced repeat campaigners, with serial activists generating materially better returns than occasional entrants to the strategy. Around 70% of activist investors were involved in just one campaign between 2018 and 2026, according to a new report by JPMorgan, while more than 80% participated in no more than two campaigns. However, the repor

Fund exceeds target as investors back regional growth markets. Blackstone has raised $13.1 billion for its latest Asia private equity fund, exceeding its target and marking the largest Asia-focused buyout vehicle in the firm's history. In a Tuesday press release, the alternative asset manager said Blackstone Capital Partners Asia III closed above its initial $10 billion target after attractive strong demand from institutional investors. The fund was oversubscribed and ultimat

Case tests boundaries between market commentary and securities fraud. Short seller Andrew Left has been found guilty of securities fraud, in a landmark verdict that could have significant implications for activist investors and market commentators who publicly disclose trading views. A federal jury convicted the founder of Citron Research on one count of securities fraud and 12 related counts after prosecutors alleged he misled investors about his trading positions while publ

Activist calls for strategic review amid governance and execution concerns. Elliott Investment Management has built an AU$1 billion ($715 billion) stake in Australian gold miner Northern Star Resources and is pushing for a strategic review, arguing that operational missteps and governance shortcomings have prevented shareholders from fully benefiting from record gold prices. The activist hedge fund has accumulated a roughly 4% stake, according to media reports, making it one

Growing bearish bets highlight divide over Flutter's future growth. Hedge funds have filed a total of GBP640 million ($861 million) of short positions against Irish-American gambling company Flutter Entertainment, underscoring growing investor concerns over the company’s outlook. Recent regulatory disclosures on the London Stock Exchange show a number of prominent hedge funds holding bearish positions in Flutter, including D. E. Shaw, Two Sigma Investments, AQR Capital Manage

Activist says Texas utility could exceed Sempra's current valuation. Voss Capital has urged U.S. utility giant Sempra to spin off its Texas electricity transmission business Oncor Electric Delivery, arguing the move could unlock substantial shareholder value and simplify the company's structure. The Houston-based activist investor owns a less-than-1% stake in Sempra, according to a recent Reuters report, and argued that an independent Oncor could be worth up to $78 million by

Hospitality billionaire offers nearly 50% premium to acquire Caesars. Hospitality billionaire Tilman Fertitta is set to take Vegas giant Caesars Entertainment private in a $17.6 billion deal, including debt, marking one of the largest gaming-sector takeovers in recent years. According to a Thursday announcement, Caesars shareholders will receive $31 per share in cash, a nearly 50% premium to the stock’s closing price before the deal was first reported and about 8% to its last

The activist hopes to reverse lagging stock performance after Synopsys raises outlook. Activist investor Elliott Investment Management has won a board seat in a settlement with U.S. software company Synopsys. According to a Wednesday regulatory filing, Synopsys will expand its board from 10 to 11 directors, with Elliott Managing Partner Jesse Cohn joining the team. Cohn will also take a seat on the company’s corporate governance and nominating committee. In exchange, the acti

The central bank warned leveraged funds could amplify sovereign bond stress. The European Central Bank (ECB) has warned that growing hedge fund leverage in sovereign bond markets could become a threat to financial stability, raising concerns that heavily leveraged investors may amplify future market stress. In the ECB’s May Financial Stability Review, it said hedge funds have become increasingly active participants in euro-area government bond markets, often employing highly

Bolloré's opposition raises fresh doubts over Ackman's blockbuster UMG bid. French billionaire Cyrille Bolloré has publicly rejected Bill Ackman’s proposed EUR55.8 billion ($64 billion) acquisition of Universal Music Group (UMG), casting fresh doubt over the future of one of the year’s largest takeover attempts. The Bolloré family, which controls an 18.4% stake in UMG, is the company’s largest shareholder and has long been viewed as a pivotal figure in determining the fate of

Fed risks falling behind the curve, Citadel Securities warns investors. The U.S. market maker cautioned that the Federal Reserve could be forced into a more hawkish policy stance if inflation continues to accelerate, warning that policymakers risk falling behind the curve amid resilient economic growth and tight labor markets. In a recent market insight report, Citadel set the scene by pointing out that inflation pressures are beginning to rise again, economic growth remains

The activist has threatened a proxy fight if the deal goes through. Activist investor Ancora Holdings has threatened a proxy fight if adhesive maker H.B. Fuller attempts to acquire Advanced Medical Solutions Group (AMS). The company submitted a GBP600 million ($808 million) unsolicited takeover proposal for AMS in late April. AMS is a UK-based medical-products company that could help H.B. Fuller expand deeper into medical adhesives and wound-care markets, which it appears to

Andrew Houston will become executive chair, with Ashraf Alkarmi set to take the reins. Dropbox CEO and Co-Founder Andrew Houston is due to step down from his leadership position and move to an executive chair role, with insider Ashraf Alkarmi set to take the helm. In a Tuesday regulatory filing, the company revealed that Houston would remain as co-CEO during a transition period, and that Michael Torres, vice president for the Chrome browser at Google, would step into the chie

Incoming CEO Heidi O'Neill now tasked with ambitious turnaround plans. Lululemon Athletica has reached a settlement with activist founder Chip Wilson, conceding two board seats in exchange for an 18-month truce. The Canadian-American athletic apparel maker said that Wilson's nominees Marc Maurer, a former co-CEO of sneaker maker On Holding, and Laura Gentile, a former chief marketing officer of ESPN, would join the board after the June 25 annual meeting. Lululemon and Wilson,

The move stabilizes Nexi as talk of Europe's digital currency escalates. Italian sovereign wealth fund CDP Equity is set to boost its stake in European paytech giant Nexi to nearly 30%, offering a defense against rising privatization interest. In a Monday statement seen by Reuters, CDP said it plans to raise its stake from 19.14% to as much as 29.9%, just weeks after rumors surfaced that private equity firm CVC Capital Partners was in the early stages of exploring a bid to ta