your doom 'n gloom opinion will be yesterday's news. This is purely a temporary dip due to covid third wave and lockdown.

You're lucky you're holding onto your shares instead of letting others snatch them at bargain prices. Lots more buyers at this price.

Main thing is that the activists, Leon Bressler and Xvier, have taken control of Management and their interests are aligned with us s holders.
Stock up while you can; it won't be this cheap for long.

Unibail axes CEO after rebels gain board control

Nick LenaghanProperty editor

Nov 19, 2020 – 12.28pm

French shopping centre giant Unibail-Rodamco-Westfield has dumped its chief executive just days after a group of activist investors took control of the board chairmanship amid ructions over its corporate strategy.

As foreshadowed by The Australian Financial Review this week, chief executive Christophe Cuvillier will exit the top post in the wake of the boardroom coup executed by the activist group at the annual shareholder meeting last week.

Christophe Cuvillier, Unibail's chief executive, will exit after his plan for a massive equity raising was defeated. Peter Braig

At that meeting, former chief Leon Bressler took over the chair while fellow rebel activist Xavier Niel, a telecoms billionaire, took over the remuneration committee. A third director nominated by the rebel group was also elected to the board.

Crucially, the activist group torpedoed a heavily dilutive €3.5 billion ($5.7 billion) equity raising championed by Mr Cuvillier as the salve to the embattled retail landlord's battered balance sheet.

The defeat of that proposal spelt the end for the chief executive who will be replaced by Jean-Marie Tritant. Mr Tritant will become chief operating officer through a transition period before Mr Cuvillier steps down from the top post at the end of the year.

Related Quotes

URWUnibail-Rodamco-Westfield

$4.550 -4.41%

1 year1 day

Nov 19May 20Nov 200.0006.00012.000

0

"A transition phase is beginning for URW [Unibail]," Mr Bressler said. "I am delighted that Christophe Cuvillier has agreed to lead it for the group.

"His long experience as CEO, particularly during the ongoing health and economic crisis, will be very valuable. I am convinced that Jean-Marie will lead the company with great success."

The activist group, who control 5 per cent of the Unibail's stock, argued the $32 billion buyout two years ago of the Westfield portfolio of US and European malls assembled by Sir Frank Lowy – which remains the biggest takeover in Australian corporate history – saddled Unibail with too much debt.

They had pushed instead to sell off Unibail's US portfolio, which includes Lowy-created prizes such as the Westfield mall in New York's World Trade Centre, using the proceeds to pay off debt.

Related

Unibail CEO teeters on exit after activists seize board control

Related

Why Europe faces a long, slow convalescence from coronavirus

Mr Cuvillier's proposals had included asset divestments as well as part of a €9 billion 'RESET' strategy to shore up the company's finances. Unibail's balance sheet has come under pressure during the disruption of the pandemic, which worsened last month with fresh lockdowns imposed across Europe to combat a second wave of the deadly virus.

Nevertheless, the stock rallied sharply this month in response to announcements from Pfizer and Moderna that their vaccines may be ready for rollout early in 2021.

Australian investors have a stake in Unibail through so-called CHESS Depositary Interests that trade on the Australian Securities Exchange.

For some onlookers in Australia, the drama in Paris will have some local echoes, where ASX-listed property fund manager Cromwell is facing a board spill after defeats at its annual shareholder meeting this week, spearheaded by its disenchanted major investor, Singaporean investment house, ARA Asset Management.