Originally Posted by
Mickey
That is a valuable perspective. Thank you. So FDX was making too much money that new management took over and smashed down the work group?
Exactly. If a company is "too" fiscally responsible, the activist investors view it as an opportunity to "extract shareholder value" by leveraging the built-up assets. They do it by using their private equity funds to purchase control of the board. Thus, when they "extract shareholder value", they are the shareholder.