Dialogue with investors helps to protect against an activist attack

How to react to an attack by activist investors? A risk that rises, with 226 companies targeted in the world in 2018 (against 188 in 2017), including 25% in Europe, as Jean-Florent Rérolle, managing director at Morrow Sodali, reminded the audience during a conference organized by the French Society of Evaluators (Sfev), on March 29.

"Faced with this risk, companies must ask themselves whether their intrinsic value is linked to that of the market, reduce their vulnerabilities and engage in genuine dialogue with institutional investors to make them allies," continued Jean-Florent Rérolle. But, "in France, there is no real dialogue with the directors, some are poorly trained and poorly mastered the documentation of the company, which is often given at the last moment," explained Véronique Bresson, head of governance at Ciam, the French activist fund that has become known with the Club Med and Euro Disney and Scor files.

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