Back to News

Activist Investing Today: Wachtell’s Tetelbaum Talks NDAs

Published: February 23rd, 2024
The activist defense partner takes AIT behind the scenes to explain how companies and activists negotiate confidentiality agreements, as well as the trading and campaigning restrictions they typically include.

Nondisclosure agreements reached between activists and corporations are often viewed as perfunctory documents, but they’re typically very powerful contracts that set the tone for an entire insurgency situation, Wachtell Lipton Rosen & Katz partner Elina Tetelbaum argued on the latest Activist Investing Today podcast.

“NDAs are usually one of the first documents that get negotiated,” she explained, referencing settlement negotiations that frequently occur between investors agitating for change and companies.

On AIT, Tetelbaum, who advises companies targeted by activists, offered a behind-the-scenes look at when NDAs are typically struck, as well as the kinds of trading and campaigning restrictions they often include.

“A confidentiality agreement will often have a provision in it explaining that the existence of the confidentiality agreement is secret so you may never know anything about it,” she said.

In other cases, she explained, some details are offered, as with Walt Disney Co.’s (DIS) NDA reached in January with ValueAct Capital Management LP. Tetelbaum explained why Disney might have struck that information sharing arrangement, though she also expressed some reservations with the strategy.

Check out the podcast with Elina Tetelbaum below:

More podcasts from The Deal are available on iTunesSpotify and on

More From Activism


Activist U: Insurgent Tactics Make the Curriculum

By Ronald Orol
Published: February 8th, 2024
Top activists, including Glenn Welling, Jeff Smith and Jim Mitarotonda, as well as key legal and financial advisers are volunteering their time at a growing number of university programs on activism.