ISS Recommended Investors Of Equifax Vote Against The Re-Election Of BOD; Canadian Large Caps Increasingly Targeted By Activists


What the activism world is talking about

Proxy advisory firm Institutional Shareholder Services (ISS) recommended investors of Equifax vote against the re-election of five incumbent directors who sat on the board’s audit and technology committees prior to the credit information provider’s 2017 data breach. News of ISS’ report came three days after union pension fund Change to Win Investment Group (CtW) launched a campaign against three of the five directors, contending they are the most responsible for the company’s breach since they failed to act on multiple warning signs and known risks, conducted poor risk management, and provided weak supervision of Equifax’s compliance obligations.

Get Our Activist Investing Case Study!

Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below!

See 2017 Hedge Fund Letters.

Shares in Equifax have plummeted nearly 19% since the company’s data breach in September. The credit information provider is currently under investigation by the Securities and Exchange Commission, Department of Justice, Federal Trade Commission, and congressional committees in both the House and Senate. In addition, Equifax is facing hundreds of lawsuits, four shareholder derivative suits, and civil investigative demands by 49 Attorneys General. The company already suffers from poor director support compared to the S&P 500, according to Activist Insight Vulnerability.

What we'll be watching for this week

  • Will a shareholder group succeed in replacing the board of Australia’s DataDot Technology at the company’s general meeting Tuesday?
  • Will investors in Parmalat support Amber Capital’s nominee at the company’s annual meeting Thursday?
  • Will dissident investors Uniseraya Holdings and Ng Bie Tjin successfully overhaul the board of Singapore-based Datapulse Technology and change the company’s strategy at its extraordinary meeting Friday?

Activist shorts update

China Internet Nationwide Financial Services (CIFS) alleged that two individuals posing as journalists had been spying on the company as part of a "conspiracy" by U.S.-based short sellers to manipulate its stock price. "The company hereby declares that it strongly condemns this use of conspiracy means, stealing information, out of context, and making false accusations, and will continue to take legal sections to protect the interests of the company and all shareholders," CIFS wrote in its Friday announcement, which was only available in Chinese.

Muddy Waters Research issued a short report on the lending advisory business in December 2017, accusing it of being “just another worthless China fraud.” On Monday, the short seller Tweeted that the company's latest announcement could be a chapter in a book entitled, “Things Real Companies Never Say.” Muddy Waters quoted the excerpt, “Don't trust the media, don't accept their interview requests, and don't create opportunities for those malicious investment institutions to short our company's stock.” Shares in CIFS have traded down nearly 59% since Muddy Waters first targeted the company.

To arrange an online demonstration of Activist Insight Shorts, email us or view our product brochure to find out more.

Chart of the week

The proportion of Canada-based companies publicly subjected to activist demands with a market cap of over $10bn as of April 13.

For bespoke data requirements, contact our team at or subscribers of Activist Insight Online can visit our interactive statistics page.

Article by Activist Insight

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)

About the Author

Since 2012, Activist Insight has provided its diverse range of clients with the most comprehensive information on activist investing worldwide. Founded by Nick Arnott and Kerry Pogue with the objective of providing unmatched intelligence to professionals in the global activist investment space, Activist Insight made its entry into the market with online information product, Activist Insight Online. Activist Insight Monthly, the world’s only monthly magazine dedicated to shareholder activism, soon followed, granting its readership access to the thoughts and opinions of key industry professionals, while providing an editorial vehicle for the data trends uniquely aggregated from Activist Insight Online. In 2013, Activist Insight’s sister business, Proxy Insight, was co-founded by Nick Dawson and Nick Arnott.

Be the first to comment on "ISS Recommended Investors Of Equifax Vote Against The Re-Election Of BOD; Canadian Large Caps Increasingly Targeted By Activists"

Leave a comment

Your email address will not be published.