Paul Singer’s New Mantra: Be Like Argentina

Just be reasonable and put a price on your head.
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Elliott Management is certainly keeping busypositioning itself for the widespread global depression that’s heading our way. The hedge fund’s latest project is to get Dutch paint behemoth Akzo Nobel to sell itself to American paint behemoth PPG Industries. Not for a mere $24.19 billion, of course. Paul Singer & co. can see as clearly as Akzo that that’s way too low. But however will Akzo figure out what the right number is if it stubbornly refuses to have a conversation about it?

Paul Singer is familiar with adversaries who won’t talk to him. He’s also familiar with how that usually turns out for them. But there is a way to avoid the unpleasantness of a proxy contest to fire the entire board. And that is: Do what he wants you to do. Just look at Argentina. After exhausting all other options, and a few non-options, like defaulting again, Argentina eventually saw the wisdom of giving Elliott what it wanted, and now it’s booming. Just ask it.

Argentina’s battered economy showed signs of recovering in the fourth quarter of 2016, growing 0.5% from the previous quarter, the national statics agency said Tuesday….

Mr. Carugati said the economy is now growing at a pace of about 1% per quarter. He expects economic output to expand about 3.4% this year.

And if you choose to act like old Argentina, well, Paul Singer is ready to treat you like old Argentina.

If Akzo “is remiss in its governance obligations to shareholders, Elliott will consider appropriate remedies, including possibly requesting the convocation of an [extraordinary general meeting] of Akzo Nobel,” the hedge fund said in a release.

Elliott Steps Up Pressure as Akzo Spurns New PPG Bid [WSJ]
Argentina Economy Showing Signs of Recovery, National Agency Says [WSJ]

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