Activists Fail On Kohl's

Often, when an activist investor takes an interest in a company, the stock price will increase, especially if it is felt that management is performing poorly. Recently, a group of activist investors took a 9.5 percent stake in department store chain Kohl's. The group proposed a slate of nine new board members, which would give it control of the company. Kohl's argued that the new board members would disrupt momentum and rejected the nominations. In a nod to the market's belief that Kohl's is moving in the right direction, the stock price jumped almost 8 percent on the rejection.