Bad News: Corporate Raiders Take Aim at Williams

Oh oh. Keith Meister runs a hedge fund (investment fund) called Corvex Capital. Keith Meister is a Carl Icahn student and disciple (have we told you lately how much we despise corporate raiders like Icahn?). Meister’s Corvex Capital has disclosed “surging” its position in midstream company Williams. In fact, Corvex Capital has a signed agreement with Soroban Capital Partners, another big investor in Williams. The two companies together are now the single largest shareholder in Williams. This is definitely not good news. It means the Corvex and Soroban plan to make mischief with Williams.

Corporate raiders like Icahn (and Meister) invest in companies purely to force the sale of assets and the firing of employees (i.e. to “cut costs”) in order to drive up the price of the stock, which they then turn around and sell at a huge profit. It’s sleazy, it’s slimy, and it’s the part of capitalism we don’t like (and we’re raging capitalists here at MDN HQ). Icahn, through his “tool” Doug Lawler, has forced the firings of 1,200 people at Chesapeake in the past year. Will such a fate come to Williams? We’d be nervous if we worked there…

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