What the activism world is talking about – short activists hone in on Tilray’s Stock as for longs? Its all about Sky and Comcast
After Activist Insight Online last week revealed European activist fund CIAM invested in Sky and believed the company was worth 17 pounds per share, the weekend saw a lengthy bidding war for the broadcaster end in an auction between Twenty-First Century Fox and Comcast. Comcast came out on top with a $40 billion takeover offer – 17.28 pounds per share compared to Fox’s 15.67 pounds per share. Sky is now urging shareholders to accept the substantially better offer, which it believes is in the best interests for everyone. Whether activists think they can help the Murdochs make one last push remains to be seen. Elliott Management declined to comment.
What we’ll be watching for this week
- Will GrowMax shareholders vote for its board’s slate of nominees and its proposed acquisition of PrimaSea?
- Will USG’s proposed merger with German peer Gebr. Knauf be approved?
- Will Athenahealth attract any offers besides Elliott’s before its extended September 26 deadline for bids?
Q2 hedge fund letters, conference, scoops etc
Activist shorts update
Despite an 80% appreciation in Canadian cannabis company Tilray's stock, Citron Research reiterated its short position. The short seller’s Andrew Left explained in a Youtube video that Tilray is a bubble and he will continue to short the shares even as they rise. Left said there are at least seven cannabis companies in the space that are cheaper and better positioned than Tilray, naming Canopy Growth as the “gold standard” of cannabis.
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Chart of the week
The number of U.S.-based companies facing public M&A-related activist demands (between January 1 and September 21 of each year).
Article by Activist Insight
