Jeff Smith, CEO and chief investment officer of Starboard Value, L.P., speaks at a panel discussion at the SALT conference in Las Vegas May 14, 2014. SALT is produced by SkyBridge Capital, a global investment firm.
NEW YORK, Jan 30 - Warren Buffett has his aw-shucks act down pat. And the Sage of Omaha has monetized that image to great effect, sweeping into situations to support companies in a tight spot with his cash and his implicit seal of approval while getting a plum deal that no other shareholder could land. With markets sagging and deals drawing opposition, such imprimaturs have a value - and at Ritchie Bros AuctioneersOf course, Buffett’s investments aren’t as gentle as his image.
in 2019 helped shore up boss Vicki Hollub’s risky pursuit of rival Anadarko Petroleum. It didn’t come cheap - and the deal ended up being structured to avoid a vote by pesky shareholders. Still, it was enough to win the deal and keep Hollub in place amid a bruising fight with activist Carl Icahn. Today’s market may be full of similar opportunities. Big acquirers can see smaller rivals laid low by the stock-market downturn, spying opportunities for acquisitions. But they need to overcome one big obstacle: shareholders. The sellers’ shareholders are wary of cashing out on the cheap; buyers may not want to see depressed stock used as a currency, or more debt when financing markets are expensive.
Heavy equipment auctioneer Ritchie Bros ran into both problems in its $7 billion bid to buy salvage-car portal IAA