Latest news with #shareholderRights
Yahoo
16-06-2025
- Business
- Yahoo
Victoria's Secret faces fresh activist fight from Barington Capital, source says
By Abigail Summerville NEW YORK (Reuters) -Activist investor Barington Capital Group plans to mount a push to change Victoria's Secret's board of directors and end a recently adopted shareholder's rights plan, according to a person familiar with the situation. The New York-based hedge fund, which owns more than 1% of the company, believes Victoria's Secret has underperformed its competitors and lost value since its spin-off from former parent company L Brands in 2021, the person said, asking not to be identified because the matter is private. Amid waning demand for its intimate apparel, Victoria's Secret shares have dropped by about 55% this year, and its current market value is about $1.45 billion. The Wall Street Journal reported Barington's plans earlier on Sunday. A Victoria's Secret spokesperson said that Barington has not contacted the company, but it looks forward to "discussing their views with them." "We are confident that executing our strategy under the new and experienced leadership team will continue to unlock value for our shareholders," the spokesperson said. Barington wants the company to replace most or all of its board and end the "poison pill" plan that it adopted in May to protect it from hostile takeovers. It also believes the retailer should focus on core brands and initiatives, like bras and the Angels campaign, and accelerate growth in digital and international markets, the source said. Barington believes the company's Chief Executive Hillary Super, who took over in September 2024, has limited public company experience, and that the rest of the board lacks the necessary experience to revitalize the iconic brand, the person said. Super was previously the CEO of intimates brand Savage X Fenty. The fund also sees value in the Victoria's Secret beauty business, which it believes could be worth as much as the company's market value. Victoria's Secret adopted the poison pill plan to fend off investment firm BBRC International Private Limited, which increased its stake in the company to around 13%. Barington is also an investor in Macy's and Hanesbrands. Founded by James Mitarotonda, Barington previously pushed for changes at L Brands, which split into Victoria's Secret and Bath & Body Works. At Macy's, the firm wanted the department store to create a real estate unit and cut costs to boost the share price. Earlier this year, Barington mounted its first full-blown board room challenge since 2015 when it tried to put three directors on the board of casket maker Matthews International but ended up losing the vote.
Reuters
16-06-2025
- Business
- Reuters
Victoria's Secret faces fresh activist fight from Barington Capital, source says
NEW YORK, June 15 (Reuters) - Activist investor Barington Capital Group plans to mount a push to change Victoria's Secret's (VSCO.N), opens new tab board of directors and end a recently adopted shareholder's rights plan, according to a person familiar with the situation. The New York-based hedge fund, which owns more than 1% of the company, believes Victoria's Secret has underperformed its competitors and lost value since its spin-off from former parent company L Brands in 2021, the person said, asking not to be identified because the matter is private. Amid waning demand for its intimate apparel, Victoria's Secret shares have dropped by about 55% this year, and its current market value is about $1.45 billion. The Wall Street Journal reported Barington's plans earlier on Sunday. A Victoria's Secret spokesperson said that Barington has not contacted the company, but it looks forward to "discussing their views with them." "We are confident that executing our strategy under the new and experienced leadership team will continue to unlock value for our shareholders," the spokesperson said. Barington wants the company to replace most or all of its board and end the "poison pill" plan that it adopted in May to protect it from hostile takeovers. It also believes the retailer should focus on core brands and initiatives, like bras and the Angels campaign, and accelerate growth in digital and international markets, the source said. Barington believes the company's Chief Executive Hillary Super, who took over in September 2024, has limited public company experience, and that the rest of the board lacks the necessary experience to revitalize the iconic brand, the person said. Super was previously the CEO of intimates brand Savage X Fenty. The fund also sees value in the Victoria's Secret beauty business, which it believes could be worth as much as the company's market value. Victoria's Secret adopted the poison pill plan to fend off investment firm BBRC International Private Limited, which increased its stake in the company to around 13%. Barington is also an investor in Macy's and Hanesbrands. Founded by James Mitarotonda, Barington previously pushed for changes at L Brands, which split into Victoria's Secret and Bath & Body Works. At Macy's, the firm wanted the department store to create a real estate unit and cut costs to boost the share price. Earlier this year, Barington mounted its first full-blown board room challenge since 2015 when it tried to put three directors on the board of casket maker Matthews International but ended up losing the vote.
Yahoo
16-06-2025
- Business
- Yahoo
Victoria's Secret faces fresh activist fight from Barington Capital, source says
By Abigail Summerville NEW YORK (Reuters) -Activist investor Barington Capital Group plans to mount a push to change Victoria's Secret's board of directors and end a recently adopted shareholder's rights plan, according to a person familiar with the situation. The New York-based hedge fund, which owns more than 1% of the company, believes Victoria's Secret has underperformed its competitors and lost value since its spin-off from former parent company L Brands in 2021, the person said, asking not to be identified because the matter is private. Amid waning demand for its intimate apparel, Victoria's Secret shares have dropped by about 55% this year, and its current market value is about $1.45 billion. The Wall Street Journal reported Barington's plans earlier on Sunday. A Victoria's Secret spokesperson said that Barington has not contacted the company, but it looks forward to "discussing their views with them." "We are confident that executing our strategy under the new and experienced leadership team will continue to unlock value for our shareholders," the spokesperson said. Barington wants the company to replace most or all of its board and end the "poison pill" plan that it adopted in May to protect it from hostile takeovers. It also believes the retailer should focus on core brands and initiatives, like bras and the Angels campaign, and accelerate growth in digital and international markets, the source said. Barington believes the company's Chief Executive Hillary Super, who took over in September 2024, has limited public company experience, and that the rest of the board lacks the necessary experience to revitalize the iconic brand, the person said. Super was previously the CEO of intimates brand Savage X Fenty. The fund also sees value in the Victoria's Secret beauty business, which it believes could be worth as much as the company's market value. Victoria's Secret adopted the poison pill plan to fend off investment firm BBRC International Private Limited, which increased its stake in the company to around 13%. Barington is also an investor in Macy's and Hanesbrands. Founded by James Mitarotonda, Barington previously pushed for changes at L Brands, which split into Victoria's Secret and Bath & Body Works. At Macy's, the firm wanted the department store to create a real estate unit and cut costs to boost the share price. Earlier this year, Barington mounted its first full-blown board room challenge since 2015 when it tried to put three directors on the board of casket maker Matthews International but ended up losing the vote.
Yahoo
09-06-2025
- Automotive
- Yahoo
Tesla shareholders face staggering new hurdle after company enacts controversial policy: 'A formidable barrier'
Tesla raised the bar for shareholders to sue the company board or executives for breach of fiduciary duties. The change took effect May 15 and requires an investor or group of investors to hold 3% of the electric vehicle maker's stock "to institute or maintain a derivative proceeding," CNBC reported. Tesla's market cap is $1.123 trillion, so a plaintiff would have to own shares worth $33.7 billion. "Obviously, for a company of Tesla's size, that would be a formidable barrier to anyone bringing a lawsuit for breach of fiduciary duty," Tulane Law School's Ann Lipton told CNBC in an email. The change was enabled by a Texas law that "allows corporations to limit shareholder lawsuits against insiders for breach of fiduciary duty," the outlet added. With shareholder approval, Tesla moved its incorporation site from Delaware to the Lone Star State in June 2024. An investor who owned nine shares of Tesla stock sued the company in 2018, and CEO Elon Musk's $56 billion compensation package was revoked in January 2024. Musk is by far the richest person on the planet, and his wealth makes him nearly untouchable. He helped to pioneer the EV movement by becoming an early investor in Tesla in 2003, and the company has been known for innovative technology and industry-leading breakthroughs. Recently, however, the South African has drawn criticism for straying into American and European politics, including spending lavishly on the U.S. presidential election campaign of Donald Trump, leading government spending cuts as the head of the U.S. Department of Government Efficiency, and supporting the far-right Alternative for Germany party. Activists have protested these actions, and Tesla charging stations, vehicles, and dealerships have been vandalized. Sales have plummeted, and Tesla stock spiraled downward, too, though it has regained much of its value. This upheaval and the larger perception change of Musk from groundbreaker to villain could stifle the uptake of EVs, which is one of the many things necessary to slow the rapid rise of global temperatures caused by the burning of fossil fuels for energy. It would take a massive coalition of shareholders to fight back against this move by Tesla, though companies are generally amenable to public pressure — especially when it comes to consumers' spending power. Tesla, for example, is shifting its focus from EV manufacturing to a robotaxi service and robotics to stabilize its future. Musk has a history of not delivering on outlandish promises, but it has not significantly slowed the company or deterred its supporters. What do you think of Tesla and Elon Musk? Elon is the man Love the company; hate the CEO I'm not a fan of either I don't have an opinion Click your choice to see results and speak your mind. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
08-06-2025
- Automotive
- Yahoo
Tesla shareholders face staggering new hurdle after company enacts controversial policy: 'A formidable barrier'
Tesla raised the bar for shareholders to sue the company board or executives for breach of fiduciary duties. The change took effect May 15 and requires an investor or group of investors to hold 3% of the electric vehicle maker's stock "to institute or maintain a derivative proceeding," CNBC reported. Tesla's market cap is $1.123 trillion, so a plaintiff would have to own shares worth $33.7 billion. "Obviously, for a company of Tesla's size, that would be a formidable barrier to anyone bringing a lawsuit for breach of fiduciary duty," Tulane Law School's Ann Lipton told CNBC in an email. The change was enabled by a Texas law that "allows corporations to limit shareholder lawsuits against insiders for breach of fiduciary duty," the outlet added. With shareholder approval, Tesla moved its incorporation site from Delaware to the Lone Star State in June 2024. An investor who owned nine shares of Tesla stock sued the company in 2018, and CEO Elon Musk's $56 billion compensation package was revoked in January 2024. Musk is by far the richest person on the planet, and his wealth makes him nearly untouchable. He helped to pioneer the EV movement by becoming an early investor in Tesla in 2003, and the company has been known for innovative technology and industry-leading breakthroughs. Recently, however, the South African has drawn criticism for straying into American and European politics, including spending lavishly on the U.S. presidential election campaign of Donald Trump, leading government spending cuts as the head of the U.S. Department of Government Efficiency, and supporting the far-right Alternative for Germany party. Activists have protested these actions, and Tesla charging stations, vehicles, and dealerships have been vandalized. Sales have plummeted, and Tesla stock spiraled downward, too, though it has regained much of its value. This upheaval and the larger perception change of Musk from groundbreaker to villain could stifle the uptake of EVs, which is one of the many things necessary to slow the rapid rise of global temperatures caused by the burning of fossil fuels for energy. It would take a massive coalition of shareholders to fight back against this move by Tesla, though companies are generally amenable to public pressure — especially when it comes to consumers' spending power. Tesla, for example, is shifting its focus from EV manufacturing to a robotaxi service and robotics to stabilize its future. Musk has a history of not delivering on outlandish promises, but it has not significantly slowed the company or deterred its supporters. What do you think of Tesla and Elon Musk? Elon is the man Love the company; hate the CEO I'm not a fan of either I don't have an opinion Click your choice to see results and speak your mind. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
