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Economist Edmund Phelps talks about winning the 2006 Nobel prize for economics for his research into the interplay between inflation and unemployment, in New York October 9, 2006.
Economist Edmund Phelps talks about winning the 2006 Nobel prize for economics for his research into the interplay between inflation and unemployment, in New York October 9, 2006.
(Brendan McDermid/Reuters)

Backlash toward activist investors gains momentum

Whenever activist American investors venture north of the border, they prompt feelings ranging from despair among executives and directors of targeted companies to delight among Canadian shareholders, who, in some cases, have put up with lacklustre results and do-nothing boards for far too long. Share prices tend to immediately rise, amid vows to shake up boards and managements, implement aggressive reforms, sell off assets and boost dividends. But critics say the new breed of activist fund managers care only about quick scores.