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Data as of December 31, 2017

“France’s post-election political stability has brought about renewed business confidence particularly amongst small- and mid-cap companies, the most likely targets for activism.”

Geoff Serednesky, Managing Director

Country:
France

Country: France

Average % of insider ownership:

1.54

Activism
Threat Level


To learn more about this country, please click on the tabs below

  1. Country Summary
  2. Disclosure
  3. Shareholder Rights
  4. Company Defense

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 & employee protections leave roughly 40 percent of activist campaigns unsatisfied.

Shareholders reaching or exceeding a five percent threshold, including derivative holdings (alone or in concert) and 10%, 15%, 20%, 25%, 30%, 33%, 50%, 67%, 90%, and 95% 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.

Five percent of the voting rights give shareholders power to submit resolution proposals.

In March of 2014, the Florange law was passed by the country’s socialist government, which automatically grants double voting rights to shares registered for more than two years. Although the legislation was intended to encourage long-term share ownership, investors and some management teams have pushed back against the legislation as it negates the “one share one vote” principal.

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. Removal of CEO or Other Board Member
2. Remuneration
3. Lack of/Inaccurate Information From Company

Campaigns By Year

Total
Campaigns

41

Notable Invested Activists

• Amber Capital
• Corvex Management LP
• The Children's Investment Fund Management (TCI)

Recent activism campaigns

vs.
Xpo Logistics Europe S.A. (formerly Norbert Dentressangle S.A.)
VS.
 Elliott Management
Danone
VS.
 Corvex Management LP
Criteo S.A.
VS.
 Gotham City Research

Total Active
Campaigns

7

Contact FTI Consulting

Arnaud de Cheffontaines

Senior Director
+33 1 47 03 69 48
Arnaud.deCheffontaines@fticonsulting.com

Geoff Serednesky

Capital Markets Research and Activist Engagement
Managing Director
+1 312 861 4721
Geoff.Serednesky@FTIConsulting.com