SA: FedEx naming new CEO won't stop activist from targeting company

SEEKING ALPHA reports:

FedEx’s (NYSE:FDX) announcement that founder Fred Smith will be relinquishing the CEO is unlikely to stop an activist from pursuing the company.

An activist investor might actually be emboldened to target the company with Smith stepping down, CNBC’s David Faber speculated. It was unclear if FedEx (FDX) was making the move in a preemptive move to fend off an activist. The window for board nominations doesn’t open until May.

FedEx gained 4.6% in premarket trading as investors showed their enthusiasm for the CEO change. Morgan Stanley said the move…

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