Tip Sheet: Four Tips for Handling Shareholder Activists

By Betsy Brod

While there are no tried-and-true steps to take when a shareholder activist contacts a company's management, there are actions that can mitigate potential damage. A study that

evaluated 13D filings between 2001 and 2005 found that most interactions between activist shareholders and companies are not intended to be hostile and, when they do escalate, it

is typically a result of a lack of engagement and/or communications by the company target.