Apple Inc. (AAPL), The Procter & Gamble Company (PG): Activists Are Back

Daniel Loeb and Sony

One of the most aggressive activist investors in the world, U.S. hedge fund manager Daniel Loeb, has recently taken a $1.1bn stake in Sony Corporation (ADR) (NYSE:SNE). The investor, in a letter hand-delivered to Sony’s CEO, called for the Japanese group to sell off a share of its entertainment (film and music) business. Loeb’s idea is to sell a stake of 15% to 20% of the entertainment business in order to raise capital to reduce debt and strengthen Sony’s electronics business. The CEO responded with a firm no to Loeb, but I say it won’t long until the Japanese conglomerate is forced to negotiate.

The bottom line

Companies, from Apple to Sony Corporation (ADR) (NYSE:SNE), sometimes need a shake-up. Activist investors serve such a purpose and are a powerful force driving shareholder value. Apple’s case is a great example of this. I am sure that The Procter & Gamble Company (NYSE:PG) and Sony will soon start showing the positive effects of activist intervention.

The article Activists Are Back originally appeared on Fool.com and is written by Federico Zaldua.