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U.S. campaigns jump by 46%

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M&A demands are still lower compared with historical

levels

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Activity in Japan picked up, Europe lagged

By Svea Herbst-Bayliss

NEW YORK, April 1 (Reuters) - Corporate agitators

increased pressure on companies globally to perform better by

targeting more of them worldwide during the first quarter, with

most demands for change directed at U.S. corporations, according

to new data from Barclays ( JJCTF ).

Companies including oil major BP and ride-share

company Lyft ( LYFT ) were pushed to make changes by activist

investors such as Elliott Investment Management, Mantle Ridge

and Starboard Value in the first quarter when the number of

global campaigns increased by 17% to 70. U.S. campaigns jumped

by 46% to 41, the data showed.

"We are in a phase where activists continue to take

advantage of all the uncertainties," said Jim Rossman, global

head of shareholder advisory at Barclays ( JJCTF ). "In early 2025 we have

seen more fights, more settlements and more board seats won by

the activists than we did this time a year ago."

This year's new campaigns come after a record number of

activist shareholders targeted companies globally in 2024, and

as President Donald Trump's tariffs and mass job cuts at U.S.

government agencies, coupled with fears of recession, are

creating market volatility.

Investors continue to push management to run their

businesses better, with roughly one quarter of all campaign

demands centered on strategy and operations, about the same as

last year.

Demands for M&A moves like divesting business units or

selling a company are still taking a back seat with only about a

quarter of all campaigns including them. M&A demands are down by

about half from when global deal volume hit a record high in

2021.

But activists are also seeing campaigns pay off, Rossman

said, noting the number of board seats won, often a measure of

success, jumped during the first quarter. Fifty-one seats were

obtained both in settlements and fights, marking a nearly 34%

increase from last year.

NEWCOMERS ACTIVE

Emboldened by others' success and eager to make a return in

uncertain times, activism is also becoming a popular tool for

newcomers, both newly established funds and funds that have

never mounted a campaign before.

Eleven so-called first-timers mounted campaigns during the

quarter, the data show. There was no comparative data for the

first quarter of 2024. For all of 2024 Barclays ( JJCTF ) data counted 47

newcomers.

In January, newly launched Garden Investments, run by Ed

Garden who previously co-founded Trian Fund Management, pushed

Middleby ( MIDD ), which designs and makes equipment for

foodservice and residential kitchens, to focus on its core

business. In February, Garden was added to the company's board.

Looking ahead to the rest of 2025, Barclays ( JJCTF ) bankers believe

more companies will face shareholder demands and expect most of

the activity to remain focused on U.S. companies.

Two prominent campaigns have been resolved through a vote,

with Mantle Ridge ousting Air Products and Chemicals' ( APD )

CEO and Matthews International ( MATW ) defeating Barington

Capital Group even through all three proxy advisory firms

supported the hedge fund's candidates. Barclays ( JJCTF ) data counted 13

proxy fights in the first quarter, compared with 10 a year ago.

Activity has also picked up in Japan, marking a 45% increase

from a year ago and a total of 16 campaigns, the data found. But

Europe has not seen much action with only 9 activist campaigns,

down 18% from a year ago.

(Reporting by Svea Herbst-Bayliss; Editing by Muralikumar

Anantharaman)