Activist Investor Builds $1 Billion Stake in Cognizant
Mantle Ridge has built a stake worth more than $1 billion in consultancy firm Cognizant Technology, saying its shares are undervalued. Activist investor Mantle Ridge has been engaging with the company's management and board since mid-2024 to boost the share price. The activist firm intends to remain closely engaged with Cognizant's management and believes the company has more room to grow.
- This move signals a growing trend in activist investing, where firms like Mantle Ridge are taking a proactive role in shaping companies' strategic direction.
- What implications will this level of engagement have for the corporate governance landscape, particularly in industries heavily reliant on shareholder activism?