Jump to Content Jump to Main Navigation

You are looking at 11 of 1 results

Contributor: Pacces, Alessio M x
Clear All

Part VII Facilitating Cross-Border Investing, 23 Shareholder Activism in the CMU »

Alessio M Pacces
From: Capital Markets Union in Europe
Edited By: Danny Busch, Emilios Avgouleas, Guido Ferrarini
Hedge fund activism is on the rise in Europe. Whereas hedge funds activism has been so far largely a U.S. phenomenon, there is survey evidence suggesting that hedge funds are looking for new targets. Europe is particularly attractive in this respect because the European jurisdictions support broader rights than those available to the shareholders of a typical Delaware-incorporated U.S. public company. Shareholder rights are an important part of the activist hedge fund's toolbox, although they must be understood in light of the activist's business model. This chapter discusses hedge fund activism as a major driver of institutional shareholders' engagement, particularly in Europe. It argues that the revision of the Shareholder Rights Directive (SRD) curbs rather than supports hedge funds activism, therefore casting some doubts as to whether the SRD will effectively foster engagement and investment by institutional shareholders.