In AMM Dividend Letter Vol. 23 we mentioned that Johnson & Johnson (JNJ) could be a target for activists. Size is no longer an impediment to initiating change. An activist investor has taken a stake in JNJ. We also mentioned that JNJ could split up into 3 companies to unlock value and this is the activist’s plan.
From The Motley Fool.
Artisan, a global investment firm that manages nearly $100 billion in assets, announced last week that it’s urging other activists to push for Johnson & Johnson (NYSE:JNJ), a $289 billion healthcare conglomerate, to break up into three separate companies: a consumer health company, a medical device maker, and a pharmaceuticals company. Based on Artisan’s numbers, doing so could unlock nearly $90 billion in enterprise value for shareholders.
As the article goes on to state, Artisan only owns 0.2% of shares outstanding. They won’t be able to push for changes on their own. Most likely they will get other large shareholders on board, try to get a seat or seats on the board, and push for change from the inside.