TheCorporateCounsel.net

In their latest “Understanding Activism with John & J.T.” podcast, John and J.T. Ho were joined by Dan McDermott. Dan is a senior vice president at strategic communications firm ICR, and is also an adjunct professor at the University of Pennsylvania Law School, where he teaches one of the nation’s few law school courses on shareholder activism. Dan’s recent article on the hidden costs of short attacks – which I blogged about on DealLawyers.com last month – formed the basis for their discussion.

Topics covered during this 30-minute podcast included:

– Differences between the objectives of an activist short seller and a traditional activist
– Common themes or “red flags” that activist short sellers look for in targeting companies
– How an activist short attack unfolds and typical company responses
– Use of “wolf pack” tactics & other collaborative efforts between activist short sellers
– The need to include the possibility of short attacks in company’s activist preparedness efforts
– How strategies for responding to short attacks differ from responses to traditional activism
– How often short attacks lead to traditional activism
– How companies prepare to respond effectively to short attacks
– Impact of recent SEC enforcement activity on short attack strategy
– Lessons from law school course on activism

John and J.T.’s objective with this podcast series is to share perspectives on key issues and developments in shareholder activism from representatives of both public companies and activists. They’re continuing to record new podcasts, and I have found them very engaging and filled with practical insights! Stay tuned for more!

– Meredith Ervine