Krishna Veeraraghavan Discusses Steps Companies Should Take When an Activist Acquires Equity Positions

Corporate partner Krishna Veeraraghavan discussed key steps companies should take when their stock is bought by an activist with IR Magazine, a trade publication aimed at the investor relations community. In “Problem solver: What to do when an activist investor buys into your stock,” published on June 8, Krishna notes that the first step is assessing the activist and their situation, as well as where the company is in its annual meeting calendar.

“An activist’s most important tool is being able to nominate directors and run a proxy fight at the annual meeting, so an upcoming nomination deadline may signal a more urgent situation, whereas the company and its advisers may breathe a little more easily if the deadline is in the rearview mirror,” says Krishna.

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