“Activism has also become prevalent in France, with recent campaigns involving either foreign activists or traditional investors, who adopt similar methods occasionally. French companies should therefore make sure their financial communication adequately addresses the concerns usually targeted. This requires preparation in advance.”
Arnaud Salla, Managing Director
Country:
France
Average % of insider ownership:
To learn more about this country, please click on the tabs below
France has long considered itself immune to activism thanks to its legal and regulatory system, often viewed by French companies as the “scarecrow” protecting them. Despite the unfriendly environment for activists, France has recently become one of the largest markets for shareholder activism in Europe. Even so, state influence over companies and management and employee protections leave roughly 40 percent of activist campaigns unsatisfied.
Shareholders reaching or exceeding a 5 percent threshold, including derivative holdings (alone or in concert) and 10, 25 and 30 percent after that, must disclose their voting interest with a declaration about intentions to acquire a controlling stake or to ask for seats on the company’s supervisory or management board.
Structural defenses are limited. However, the “Société en Commandite par Actions” is probably the best-known type of defense structure, often used by family-owned companies. It protects the incumbent management through a partnership between general partners bearing unlimited liability and shareholders with limited liability.
Top Campaigns by Type
1. Gain Board Representation
2. Removal of CEO or other Board member
3. Spin-off/sale of business division
Campaigns By Year
Total
Campaigns
Notable Invested Activists
• Vincent Bolloré (Vivendi)
• Muddy Waters
• Wyser-Pratte Management Co
Recent activism campaigns
| Casino | VS. |
Muddy Waters |
| Hi-Media | VS. |
BJ Invest |
| Rexel | VS. |
Cevian |
Total Active
Campaigns
Contact FTI Consulting
Capital Markets Research and Activist Engagement
Managing Director
+1 312 861 4721
Geoff.Serednesky@FTIConsulting.com
Co-Head Paris office - Head EMEA Capital Markets
Managing Director
+33 (0)1 47 03 68 65
Arnaud.Salla@fticonsulting.com