Undisclosed stake right now but almost surely leads to the board making changes, if not moving on from Tom
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A hostile takeover is never a good thing for the company being targeted. The only one benefitting is the corporate raider. If/when this happens start prepping to abandon ship.
Everyone get ready for a game of corporate Whack-A-Mole where the mo--s are departments and silos.
Unfortunately you could be the target of the hammer for either being over or under performing. Being in the middle may help you go unnoticed.
Carl Icahn tried this two years ago and he’s one of the best in the business
There was nothing good in store for the Allstate rank and file anyway. It'll be nice to see the senior deadweight sweat it out alongside everyone else
Only clowns think this is a good thing. Be careful what you ask for
The only winner here will be Wilson. He's likely the largest individual shareholder based on his tenure and generous compensation package. Stock has risen on the back of Progressive's fine quarterly report, but generally disappoints when we report our own results. The activist will lay out a range of recommendations and push forward. Their only goal is stock price movement, not necessarily the impact on individuals in the short-term. This is a reflection on the BOD's inability to manage our own path forward. There are some highly qualified folks on the Board, but apparently they can't effectuate the right level of change strategies or execution with the other b-ms.
The humane thing to do at this point is to put Allstate out of its misery. It's been painful to watch it die slowly, too stupid to understand what's happening to it.
@1fve+1p7xBSvf, what dr-gs are you on??
In case you have not noticed, there is no “union” at Allstate and their hat is occurring has NOTHING to do with Socialism….
This is the definition of “survival of the fittest” capitalism…
The only thing that matters is the “buck”…
Buy it, destroy the work force, chop it, sell it and move onto the next….
Everyone loves capitalism until they are on the back end of it…
@1fve+1p7xBSvf, it’s called capitalism buddy…..
That hedge fund is going to make bigly bucks …and that’s what it is all about isn’t it???
Tommy is finally getting to have the nightmares that he has given to everyone else. He himself is now solidly in the crosshairs as is everyone that surround him.
That is why they have now hired a ton of lawyers to advise them how to deal with this. . He ain’t too bright but he certainly sees the writing on the wall,,,He created this. He made Allstate a target because of his poor leadership and losses….
The bad news is that as the stock rises in the short term he will make even more money. However, for people like him…it is no longer about money…it is about EGO and that big ego is going to take a big hit….and he will likely get a well deserved humiliating exit….
In the end, This will not be good for any remaining employees. Departments will be shut down. Profitable businesses will be whittled away….and sadly expect little to no severance considerations as all of this occurs…
If you get a decent opportunity to move on, take it!!!
This is good news/bad news.
The good news is since the board won't show Tom the door themselves he's likely to be pushed out. As will many of his senior strap hangers who pursue their own agendas instead of making the company profitable. They'll actually bear some accountability for their pi-s poor decision making and lack of understanding of day to day reality. But they have golden parachutes so they don't care anyway.
The bad news is, as someone else pointed out, corporate raiders are ruthless when it comes to cutting expenses. So if there are more layoffs to be done, expect it to be just like this last round last week but with even less humanity (if that's even possible). One would hope they'd start with the DEI nonsense and other money pits Allstate has sunk operating cash into but they'll eventually get around to the meat.
IMHO, this explains why this last round of layoffs was handled the way it was: Get to a number instead of looking at performance. It also explains why the officers 'are meeting offsite' this week. Panic in the board room.
It's going to be a bumpy ride, because we haven't executed very well.
I have never seen any good come from an activist investor. It’s silly that you think this is good.
The board needs to have the courage to unseat TW themselves.
Not so fast. If true, there will be changes at the board level and the CEO will be replaced. Given the short term profitability focus for the hedge funds expect the following: exit on non profitable business and divestiture of profitable lines of business. Cost cutting and layoffs to levels that you cannot even dream about. Immediate suspension of Transformation projects and focus on core profitable business. A lot of the executives are about to “pursue other opportunities”. Plan your careers. Get out now.
This IS NOT good for employees. It means quicker and more layoffs and outsourcing. We may actually be worse off believe it or not.
I don’t think this will be good for the Allstate brand, its employees or its customers. They’ll gut the place to make a quick profit, then leave it in shambles. To all employees I say this: Run!
Out of the frying pan and into the fire.
These fund management corporations make money by squeezing blood out of a stone: they cut stuff, cut wages, cut expenses, cut benefits and make sure every last drop of expense is squeezed out of a company. Then they outsource as much as possible and sell off company assets.
ESG and "climate awareness" is a big scam that slaps a press-friendly label on extremely predatory market practices.
Nelson Peltz's activist hedge fund Trian Fund Management has built a stake in Allstate Corp (ALL.N), one of the insurers struggling to cope with the fallout of natural disasters such as the Maui wildfire in Hawaii, people familiar with the matter said.
The move could raise the pressure on Chief Executive Tom Wilson, who has led Allstate since 2007, to turn the Northbrook, Illinois-based company around following five quarters of losses. It has blamed natural disasters that are often amplified by climate change for its poor performance.
Allstate has hired investment bankers to advise it on how to handle Trian, the sources said. Trian's exact stake and plans for Allstate could not be learned.
The sources spoke on condition of anonymity because the matter is confidential. Allstate and Trian did not immediately respond to requests for comment.
The buzzards are starting to circle……
At some point, this company will be dissected and the pieces sold off….
The stock is moving not because of good performance of the company but because the market sniffs a takeover or buyout on the horizon…….which drives stock up in the short term………
- I
https://www.reuters.com/business/activist-hedge-fund-trian-targets-insurer-allstate-sources-2023-10-16/
This is legit - Reuters broke the news. Trian Fund Management.
Maybe TW will be shown the door! Since he only seems interested in running the company and its employees into the ground!