More Companies Cite Activism as a Risk in Financial Disclosures

By Shira Stein, Bloomberg BNA

Sixty-five public companies cited “shareholder activism” as a risk factor in SEC filings during the first six months of 2017, more than five times as many during the same period three years ago, according to a Bloomberg BNA analysis.

Companies are showing increasing awareness and concern about the potential costs of activism even as the rate of growth of activist campaigns has slowed.

The trend “speaks to the fact, not just that there is a lot of activism out there, but that boards and public companies are aware of the pervasive threat of activism,” Jeff ...