VOL. 128 | NO. 222 | Wednesday, November 13, 2013
Activist Investor Loeb Says He has Stake in FedEx
FedEx Corp. shares edged up Tuesday after activist investor Daniel Loeb said that he has taken a stake in the shipping company and met with its leadership.
According to a report by The Wall Street Journal, Loeb did not specify the size of his investment or what he discussed with FedEx's chief executive Fred Smith, but disclosed during an appearance at The New York Times' DealBook conference in New York that that he has invested in FedEx.
Third Point LLC, the firm founded by Loeb, is known for often aggressive tactics and sending harsh letters to management but also has worked quietly with management.
A representative for FedEx could not be reached immediately for comment.
FedEx, based in Memphis, has been dealing with softer demand across much of its business as a result of a weak global economy. The company is shedding workers and plans to raise rates for U.S. express shipping. Some analysts previously speculated that the company could be the focus of interest for an activist investor but that never came to fruition.
FedEx also announced last month that it will buy back up to 32 million shares, which will boost the value of its remaining shares.
Shares of FedEx increased $1.71 to $134.23 by late afternoon amid a broader market dip. Its shares have risen 44 percent so far this year.
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