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GM, Teva, Facebook and Other New Jana Partners Positions

Activist investor Barry Rosenstein of Jana Partners LLC offered up a window into his latest allocations, raising prospects that insurgency campaigns could be next at more than a half-dozen new investments, including Comcast Corp. (CMCSA) , Facebook Inc. (FB) , General Motors Co. (GM) , Envision Healthcare Corp. (EVHC) , W. W. Grainger Inc.   (GWW) , Teva Pharmaceutical Industries Ltd. (TEVA) , HD Supply Inc. (HDS) and Northrop Grumman Corp. (NOC) .

Teva Pharmaceuticals shot up by 7% in after-hours trading to $19.33 a share partly on the news of Jana Partners allocation of about 3.6 million shares, worth $68 million at the end of 2017. In addition, Berthshire Hathaway  (BRK.A) , led by the Oracle of Omaha, Warren Buffett, disclosed a minority investment in the troubled drugmaker. Could Buffett seek to acquire Teva, with Jana Partners agitating for a deal?

Warren Buffett

In addition, Jana Partners is no stranger to targeting physician staffing companies. The insurgent investor succeeded in pressing Team Health to sell itself to Blackstone Group for $6.1 billion in 2016. Now the fund has acquired a 1.7 million share position at Envision Healthcare, which merged with Amsurg to become a large physician staffing company. Could Envision become an M&A target soon?

In addition, Jana Partners accumulated a $54 million position, about 1.3 million shares, in General Motors, the U.S. auto company that overwhelmingly defeated another activist investor last year, Greenlight’s David Einhorn. If Rosenstein targets GM, he hopes to have a better reception that Einhorn. In June, GM investors rejected Einhorn’s proxy campaign to split the automaker’s shares into two classes by an overwhelming margin, ending a boardroom skirmish that left many stockholders scratching their heads.

Jana Partners also accumulated 9 million shares in HD Supply Holdings Inc., where Jana Partners Scott Ostfeld recently obtained a director position. Another activist investor, Lauren Taylor Wolfe, formerly of Blue Harbour Group, also has a directorship at the company.

In addition, Jana Partners accumulated 237,886 shares in Grainger, 276,104 shares in Northrop Grumman and 2.1 million Comcast shares. He also took 473,526 shares, roughly $83 million value, in Facebook, the social media giant controlled by founder Mark Zuckerberg.

Editor’s note: This article originally appeared on The Deal , our sister publication that offers sophisticated insight and analysis on all types of deals, from inception to integration. Click here for a free trial.

Comcast and Facebook are holdings in Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio . Want to be alerted before Cramer buys or sells CMCSA or FB ? Learn more now.

 

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