By Robin Sidel And Liz Hoffman
Investment firm ValueAct Capital Management LP has taken a
roughly $1 billion stake in American Express Co., according to a
person familiar with the matter, the latest example of an activist
investor targeting a blue-chip firm.
It isn't clear at this point if San Francisco-based ValueAct
plans to agitate for changes at the big New York-based card
company, which has been led by Chief Executive Kenneth Chenault
since 2001.
"ValueAct is a well-respected firm," AmEx said in a statement.
"We have been speaking with them, as we do with other investors,
and look forward to continuing a constructive dialogue. At American
Express, we are focused on building long-term value for
shareholders, and are always open to the views and perspectives of
our investors."
AmEx has seen its stock price fall 13% this year due to two
high-profile losses that are expected to take a big bite out of
earnings for at least the next year.
The move by ValueAct, first reported by Bloomberg, sent shares
of AmEx up more than 6%, to $80.05, on the New York Stock
Exchange.
Write to Robin Sidel at robin.sidel@wsj.com and Liz Hoffman at
liz.hoffman@wsj.com
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