Frontier-Spirit Merger and AI shakes up markets - Shareholder Activism Weekly | 2.4.25
Frontier-Spirit merger, AI shakes up markets and more
THREE BIG THINGS
DeepSeek overshadows big tech earnings: DeekSeek overshadowed tech earnings by shaking up the AI industry, which raised concerns about the future demand for high-end AI chips from companies such as Nvidia. Despite strong earnings from major tech firms, the market reaction was mixed and that contributed to declines in some tech stocks. - Forbes, Bill Stone, 2.2.25
Frontier-Spirit merger: Frontier and Spirit Airlines are discussing a merger again, after more than two years since the two companies failed to close a deal. In 2022, the two companies signed a cash-and-stock deal to form a new airline, but JetBlue jumped in, sparking a bidding war, with an all-cash offer. - Reuters, Rajesh Kumar Singh and Shivansh Tiwary, 1.29.25
Tariffs: U.S. tariffs on Chinese goods, totaling 10%, have gone into effect, escalating trade tensions between the two largest economies. China has vowed retaliatory measures, including a lawsuit with the World Trade Organization and announced an investigation into Google. - The Washington Post, Katrina Northrop, 2.4.25
BELOW THE FOLD
Starboard takes a stake in Becton Dickinson: Activist investor Starboard Value has taken a stake in Becton Dickinson and is pressing the medtech company to sell off its life sciences division. - Benzinga, Vandana Singh, 2.3.25
Smithfield’s IPO: Smithfield Foods, the largest pork producer in the U.S., raised less than 21% of its $940 million target in its IPO last week. - Axios, Dan Primack, 1.28.25
KKR and activists: KKR has undertaken a larger stake in the medical and dental-supply company Henry Schein. The company has been the subject of an activist campaign by Ananym Capital Management, who had been pushing for board leadership changes. KKR said that it may continue to make similar investments in companies subjected to activist pressures, if the firm has a good relationship with its management. - Wall Street Journal, Miriam Gottfried and Lauren Thomas, 1.29.25
Trump admin blocks $14 billion HP-Juniper buyout: The Justice Department sued to block HP’s $14 billion acquisition of Juniper Networks on Thursday, the first merger blocked by the Trump administration that is expected to take a softer approach to mergers. The DOJ’s lawsuit said that the combination would eliminate competition, raise prices and reduce innovation. - Associated Press, Matt Ott, 1.30.25
Penn Entertainment Shareholder Launches Proxy Fight: A prominent Penn Entertainment Shareholder, HG Vora, has launched a proxy fight against the casino operator for failed acquisitions seeking three board seats. - Wall Street Journal, Lauren Thomas, 1.29.25
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