Activist Investing in Europe 2024, published in association with Skadden, gives an in-depth overview of the key trends and challenges UK and European corporates are facing in the year ahead.

Key findings include:

• More than half of corporate respondents forecast either a moderate (37%) or significant (23%) increase in shareholder activism over the next 12 months. Two-thirds of activists (67%) say their organisation will be involved in at least three campaigns in the next 12 months.
• Almost all survey respondents believe activists in Europe will increasingly use a strategy of visible, public activism – as opposed to “quiet”, confidential activism – over the next 12 months. Overall, 98% of respondents agree, including 46% who strongly agree.
• Respondents believe companies in Europe should mainly be concerned about becoming targets from activists based in continental Europe (98%) and/or in the UK (96%) over the next 12 months.
• By far the largest share of respondents (42%) expect companies in the technology, media & telecoms (TMT) sector to be targeted the most frequently by activists over the next 12 months. Energy, mining & utilities (EMU, 22% of first-choice ballots), financial services (16%) and consumer & retail industries (12%) are also seen as likely targets.
• Respondents see activists in Europe as most likely to focus on ESG issues (28%), a significant shift from last year’s survey. Respondents also expect activists to demand governance structure changes (26%) and changes to the board or senior management (20%).
• More than two-thirds of respondents (68%) agree that activists have recently become more prescriptive in their ESG-related demands and that they are less likely to find broader shareholder approval for these demands than they were 12 months ago. Activists are more likely than corporate respondents to agree (80% and 63%, respectively).
• The single most effective step for companies seeking to mitigate the chances of activist campaigns is to maintain transparent disclosure practices with shareholders and investors (cited by 26%). Where a campaign goes public, the most effective defensive tactic that companies can employ is regarded as communication with the activist (38%).

The report is also available at skadden.com.