Douglas Rappaport Quoted in Dealreporter’s Mid-Year Proxy Review Article

Akin Gump litigation partner Douglas Rappaport has been quoted in the Dealreporter story “Activists’ private engagement heralds uptick in campaigns ahead – North America mid-year review.”

The publication, in its look back at proxy season, reports that activists’ private engagement with corporates remains on the rise following pandemic lows, despite new campaigns in the United States still being well below pre-pandemic levels. According to Rappaport, strong performance within an industry can attract attention to laggards, though some institutional investors are more comfortable voicing their opinions when there is a deal in hand rather than pursuing a proxy contest.

Regarding the phenomenon surrounding so-called meme stocks, Rappaport observed that most established investors, including activists, are “in a wait-and-see mode” to see how it plays out. Given that these stocks are under regulatory scrutiny, there are risks that need to be accounted for before attempting to mobilize these investors in any campaign.

The article says advisors saw a wide range of potential targets for activism across sectors amid the post-pandemic reopening. Looking ahead, Rappaport said that apart from other normally actively targeted industries such as healthcare and energy, companies impacted by infrastructure activity, such as construction or engineering, could potentially draw activist interest.