Activist Elliott takes $2.5 billion stake in Texas Instruments, urges company to improve free cash flow

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Last edited Tue May 28, 2024, 01:48 PM - Edit history (2)

SHAREHOLDER ACTIVISM
Activist Elliott takes $2.5 billion stake in Texas Instruments, urges company to improve free cash flow

PUBLISHED TUE, MAY 28 2024 • 9:05 AM EDT | UPDATED AN HOUR AGO
David Faber
@DAVIDFABER

KEY POINTS
• Elliott, the $65 billion hedge fund best known for its shareholder activism, has made a $2.5 billion investment in Texas Instruments.
• The activist is urging Texas Instruments to improve its free cash flow by adapting a less rigid plan for capital expenditures.
• Elliott believes Texas Instrument’s rigid adherence to a capital expenditure plan put in place in 2022 has eviscerated shareholder returns.

Elliott, the $65 billion hedge fund best known for its shareholder activism, has made a $2.5 billion investment in Texas Instruments
and is urging the company to improve its free cash flow by adapting a less rigid plan for capital expenditures.

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Edited to add:

Elliott Investment Management

Company type: Private
Industry: Investment management
Founded: 1977; 47 years ago in New York City
Founder: Paul Singer
Headquarters: West Palm Beach, Florida, U.S.
Key people: Paul Singer (co-CEO), Jonathan Pollock (co-CEO)
Website: elliottmgmt.com

Elliott Investment Management L.P. is an American investment management firm. It is also one of the largest activist funds in the world.

It is the management affiliate of American hedge funds Elliott Associates L.P. and Elliott International Limited. The Elliott Corporation was founded by Paul Singer, who is CEO of the management company, based in New York City. As of the first quarter of 2015, Elliott's portfolio is worth over $8 billion.

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Investments

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Johnson Controls Inc.

In May of 2024, Elliott Advisors announced that it is a large investor in Johnson Controls valued at approximately $1 billion.

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