Back to News
Activism

Activist Investing Today: Evercore’s Lin Eyes White Squire Double-Edged Sword

|
Published: October 20th, 2023
Managing director Gloria Lin, who focuses on strategic defense and shareholder advisory, discusses the pros and cons of defense PIPE infusions, governance and M&A insurgencies.

White squire PIPE investments can be a “potentially attractive” defense against an activist agitating against a deal or running a campaign at a company, Evercore Inc. managing director Gloria Lin said on the latest Activist Investing Today podcast.

More often than not, however, Evercore “cautions against” taking a PIPE investment when facing an activist.

“Unless there is a clear business purpose, such as to fund M&A or to fund R&D, it is hard to justify the need, really for all your shareholders,” Lin said. “That’s not to say we haven’t had clients in the past that have actually implemented a PIPE when there have been activists involved.”

She added that PIPE investments from well-known PE investors can give a “stamp of approval” for value creation at the company, but corporations should be aware that a friendly PIPE investor “might not be quite as supportive of the strategy” down the road.

Beyond white squire infusions, Lin discussed governance, so-called “bad deals” and trends in M&A activism amid a cooling deal market.

Check out the podcast with Gloria Lin below:

More podcasts from The Deal are available on iTunesSpotify and on TheDeal.com

More From Activism

Activism

Activist Investing Today: Brand Eyes Director Notice Compromises

By Ronald Orol
|
Published: September 12th, 2025
White & Case's Richard Brand suggests that passive investors, other institutions and academics should develop best practices for corporate bylaws seeking information about an activist's director nominations, as the matter right now is left to the courts to decide.