True. It seems like everything ends up being absorbed into huge conglomerates these days. Enough is never enough.
Actually I think he's talking about the other side of that coin wherein an entity like a hedge fund will
dismantle a huge conglomerate, doing things like closing down unprofitable segments and selling profitable ones.
Take case of Wausau Paper: an outfit called Starboard systematically acquired a LARGE percentage of its stock then pressured the Board to sell off the printing paper division, to reinvest the proceeds in renovating the tissue ("kleenex" toilet paper, and paper towels) division:
"The papermaker, with headquarters in the Wisconsin River town of Mosinee, has been under public pressure for three years from a New York hedge fund, Starboard Value LP, which already has forced the 115-year-old company to close or sell all of its Wisconsin paper mills, and all its timberlands in the state.
According to an announcement Wednesday, Wausau Paper's top management, under fire from Starboard, will leave the firm. The new interim CEO is directly allied with Starboard.
Like many paper mills in Wisconsin, which remains the nation's leading papermaking state, Wausau Paper employed generations of millworkers with pay that supported families and entire communities. Like other Wisconsin mills, it has struggled with aging mills and rapidly declining demand for publishing-grade paper, Wisconsin's stock in trade for the past century."
Read more from Journal Sentinel:
http://www.jsonline.com/business/wa...e-up-b99239328z1-253621091.html#ixzz30E55o1jw
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Short term: stock gets a bump, hedge fund/vulture capitalist sells off, pocketing profit (after all, it's
what they do, and Wausau Paper's committed to an irreversible course imposed by folks who no longer have an interest (in the technical sense of owning stock) in the company.
Now THAT oughta be against the law.