Shareholder activists have European banks in their sights

US hedge funds have cleared the way for more activist-style investing in European financial institutions. Now some home-grown activist funds are targeting banks too. They will need to adapt their tactics, but underperforming bank chief executives have another reason to be worried.

Emmanuel Faber’s exit as chief executive and chairman of French food company Danone in March was a landmark victory for shareholder activism in Europe. It proved that even a national champion, in the continent’s most notoriously protective state – and a company that had previously resisted activists – was now fair game.

Could the banks be next?

European banks make obvious targets for activists as their valuations are low and there is a clear need to restructure.

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