Activist Elliott takes $2.5 billion stake in Texas Instruments, urges company to improve free cash flow
Publishing timestamp: 2024-05-28 11:36:59
Summary
Elliott, a $65 billion hedge fund known for shareholder activism, has made a $2.5 billion investment in Texas Instruments. They are urging the company to improve its free cash flow by adopting a less rigid plan for capital expenditures. Elliott believes that Texas Instrument's current capital expenditure plan has hurt shareholder returns and is proposing a "dynamic capacity-management strategy" to increase free cash flow. The letter maintains a less adversarial tone than usual for Elliott, but still urges the company to reconsider its approach to capacity expansion.
Sentiment: MIXED
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