Here’s how they did it: the Manitowoc Company, which makes cranes and commercial food equipment, with close to $4 billion in revenue in 2014, is going to give billionaire investor Carl Icahn a seat on its board, and a seat on the board of foodservice group it’s going to launch in 2016, htrnews.com reported.
Icahn owns something like 7.7 percent of Manitowoc and he will be permitted to buy up to 14.99 percent.
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These moves came a month or so after Icahn had revealed he a stake in the company, and ordered it to get moving.
OK, he suggested.
Manitowoc also agreed to implement the changes Icahn wanted in its corporate governance. Also, holders of 10 percent of the outstanding shares would be able to call a special meeting of stockholders.
Now you see why Icahn wants those 14.99 percent?
OK, so, in return, Icahn will support Manitowoc’s current directors at the annual meeting this coming May, and to stop criticizing them in public.
And this, boys and girls, is activist investment.
Years ago the robber barons at least built railroads and dug mines. These days they just squeeze.
