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Article: Tight Credit Keeps Activist Investors Sidelined
- Article from:
- Reuters Hedgeworld
- Article date:
- August 18, 2009
CopyrightCopyright 2009 Reuters Hedgeworld. Provided by ProQuest LLC. (Hide copyright information)
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NEW YORK (Reuters) - Financial markets may have bounced back
somewhat, but aspiring corporate raiders sidelined by tight credit
will have to cool their heels a while longer.
Last year's market swoon put stocks on sale and made many
shareholders receptive to corporate overhauls - seemingly fertile
ground for the activist funds and other investors who like to buy
imperfect companies and then publicly pressure executives to make
moves to boost share prices. Yet funds cannot count on markets to
provide the money needed for strategies such as piling on debt for
buybacks or selling off business. Until lending and debt markets
rebound further, Big Gun activism must yield to quieter, more subtle ...