Those "activist investors" are at it again, this time hoping to shake down the venerable Canadian donut chain for a few easy millions.
I wish the media big-boys would drop the "activist investor" bullshit and call it like it is. These aren't activist investors, they're opportunistic shit-bag hedge fund managers looking for an easy score.
The reason they keep doing it is because it keeps working. Bill Ackman made his hedge crew a couple of billions with a relatively small stake in CP Rail.
Einhorn and company took a run at the Apple cash hoard with a similarly insignificant share position.
Why do the management types cave to this kind of blackmail?
I think it all has to do with where the MBA grads get hired. All your top guns from schools like Wharton go to the hedge funds. The guys from the fringe schools go into public service.
There's a vast pool of graduates from the middle tier who end up in the corporate sector. Secretly they all wish they worked at the hedge funds. That's because at Tim Hortons or Apple a middle management MBA can make a really good dollar...
But at a hedge fund they can get stinking filthy rich really fast!
That's why when the hedgies come a calling, the management guys at these target companies just smile and bend over.
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