Activist Trian Fund Management Takes Stake in Comcast
September 21 2020 - 4:19PM
Dow Jones News
By Corrie Driebusch and Lillian Rizzo
Activist investor Trian Fund Management LP has taken a stake in
Comcast Corp. in a bet that the cable giant's shares are
undervalued.
Trian has accumulated about 20 million shares in
Philadelphia-based Comcast, for a roughly $870 million stake or
about 0.4% of the company, a person familiar with the matter said.
Comcast's market value stood at just under $200 billion Monday
afternoon.
Executives at the hedge fund, which was founded by the investor
trio of Nelson Peltz, Ed Garden and Peter May, have recently begun
conversations with Comcast management, the person said. It isn't
clear what exactly Trian is focused on other than a belief that the
company's shares are undervalued.
Trian often seeks to encourage change at companies it targets,
such as a breakup or sale of underperforming divisions or moves to
improve operational efficiency and better use capital. It often
seeks board representation and tries to avoid public spats, unlike
some of its more pugnacious rivals.
It is a big undertaking for Trian. The Roberts family retains a
significant voting stake in Comcast and Brian Roberts, its chairman
and chief executive, has been involved with the company since the
age of 8. Comcast stock has performed relatively well and early
this year hit an all-time high before the onset of the coronavirus
pandemic, which briefly sent its stock down sharply. It has since
recovered most of the loss.
Comcast is one of the biggest companies ever targeted by an
activist. Trian is accustomed to hunting large prey, however,
having targeted companies including Procter & Gamble Co.,
DuPont de Nemours Inc. and General Electric Co.
Write to Corrie Driebusch at corrie.driebusch@wsj.com and
Lillian Rizzo at Lillian.Rizzo@wsj.com
(END) Dow Jones Newswires
September 21, 2020 16:04 ET (20:04 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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