Origins of "offensive" shareholder activism in the United States

Abstract

Carl Icahn, 1980s corporate raider and currently operator of Trian Partners, a major activist hedge fund, spelled out his business philosophy in a late 1970s memo to prospective investors in his initial investment partnership: It is our contention that sizeable profits can be earned by taking large positions in "undervalued" stocks then attempting to control the destinies of the companies in question by: a) trying to convince management to liquidate or sell the company to a "white knight", b) waging a proxy contest; c) making a tender offer and/or, d) selling back our position to the company. (Stevens 1993).