A little-known firm in London could play a crucial role in determining the fate of Jamie Dimon, the chief executive of JPMorgan Chase. The firm, Governance for Owners, has been tasked with voting the shares of BlackRock, the bank’s largest shareholder, on the question of whether to strip Mr. Dimon of his role as chairman, Susanne Craig and Jessica Silver-Greenberg report in DealBook.
In advance of the vote on May 21, JPMorgan shareholders are deciding whether the board’s lead director, Lee Raymond, a former chief of Exxon Mobil, is a strong enough counterbalance to Mr. Dimon. To BlackRock, having a strong independent director has been important, and the firm has previously said it supports companies without an independent chairman if the lead director has certain powers. Last year, some 40 percent of JPMorgan’s shares supported dividing the chairman and chief executive roles, though BlackRock did not.
BlackRock, which has a stake in JPMorgan of approximately 6.5 percent, outsourced its voting because of a provision in the Bank Holding Company Act. “In voting, Governance for Owners does not have to follow BlackRock’s corporate governance philosophy, but will take it into account, according to people briefed on the matter,†DealBook writes.
On Tuesday, Glass, Lewis & Company, a shareholder advisory firm, called for splitting the top roles, and also urged investors to withhold support for six of the bank’s 11 directors. That report, and the one on Friday from Institutional Shareholder Services, raised questions about the independence and qualifications of several board members.
KLEINER PERKINS, HUMBLED, ADJUSTS STRATEGY  | The venture capital firm Kleiner Perkins Caufield & Byers was once a symbol of Silicon Valley, with an ability seemingly to mint money. But the firm has hit a rough patch over the last decade, with unsuccessful investments in clean technology and a catch-up effort with social media companies, Randall Smith reports in DealBook. The firm has held meetings with outside investors this year, acknowledging that recent fund performance “wasn’t great,†one attendee said. “They really believed green tech was going to be the next big technology wave,†this investor added.
Mr. Smith reports: “Kleiner has also cut some management fees and reorganized its investment approach, eliminating three ‘silos’ that separated teams making investments in clean technology, health care and technology.†The latest setback is the difficulty at Fisker Automotive, the green-car start-up backed by Kleiner that has laid off staff and hired bankruptcy advisers.
CHRYSLER HAUNTED BY CRISIS-ERA DEAL  | “All deal makers have a number they want to hit. In the case of Chrysler, the United Automobile Workers union has one number, and Sergio Marchionne, the chief executive of both Chrysler and Fiat, has another. Alas, they are $6 billion apart,†Steven M. Davidoff writes in the Deal Professor column. “Fiat and the union workers’ health care trust are fighting over that yawning gulf in a court in Delaware, arguing over buyout arrangements struck in the depths of the financial crisis when Chrysler was arguably worthless. It’s a lesson in how deals struck hastily in the heat of crisis can come back to haunt in unexpected ways.â€
ON THE AGENDA Â |Â Hedge fund titans including William A. Ackman, Kyle Bass, James Chanos, Stanley Druckenmiller and David Einhorn are speaking at the Sohn Investment Conference in New York. Tesla, Groupon and Green Mountain Coffee Roasters report earnings on Wednesday evening. Michael Novograntz of the Fortress Investment Group is on Bloomberg TV at 10:30 a.m. Anthony Scaramucci of SkyBridge Capital is on CNBC at 12:30 p.m. H. Rodgin Cohen of Sullivan & Cromwell is on Bloomberg TV at 2 p.m.
YAHOO SAID TO LOOK AT HULU  | Marissa Mayer, Yahoo’s chief executive, “recently met with top execs at Hulu, the premium video service whose media company owners have been considering selling it for some months,†Kara Swisher and Peter Kafka of AllThingsD report, citing unidentified people close to the situation. Yahoo is “in the process†but has not made a formal bid, the report said. “Sources said Mayer also had an extensive getting-to-know-you meeting, which was apparently not held at Hulu’s offices in Santa Monica, Calif., along with C.O.O. Henrique De Castro. The discussion is taking place in the wake of Yahoo’s failed bid â€" largely engineered by De Castro â€" to purchase a majority stake in France Télécom’s Dailymotion video service, after a government official in the countrysaid Yahoo could not own 75 percent of the company.â€
Saudi Prince Has an Appetite for Big Deals  | The Financial Times reports: “Prince Alwaleed bin Talal, the billionaire Saudi Arabian investor, is prepared to offer more shares in his Kingdom Holding investment company to fund a big acquisition to expand his sprawling banking-to-hotels empire.†FINANCIAL TIMES
Icahn and Southeastern May Team Up Over Dell  | The Wall Street Journal reports: “Southeastern Asset Management Inc. and investor Carl Icahn are talking about teaming up to nominate directors to the Dell Inc. board as part of an effort to derail the computer maker’s $24.4 billion leveraged buyout, people familiar with the matter said.†WALL STREET JOURNAL
Solvay to Divest PVC Unit in Deal With Ineos  | Solvay of Belgium agreed on Tuesday to contribute its PVC unit to a joint venture with Ineos, which would eventually take full control of the business within four to six years of the deal’s closing. DealBook »
J.C. Penney Sales Fall Again  | But investors found cause for optimism in the earnings report.
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Berkshire May Increase Stake in DaVita HealthCare Partners  |Â
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Hedge Funds Expand in Credit Trading as Banks Pull Back  | Hedge funds that trade debt are adding employees as banks cut back in the face of new regulations, Bloomberg News writes. BLOOMBERG NEWS
GE Capital Embarks on a Cross-Country Ad Campaign  | GE Capital, which accounts for a significant share of General Electric’s total earnings, is going on a six-month roadshow across the United States to promote lending to midsize businesses, The New York Times writes. NEW YORK TIMES
Rothschild Reflects on Troubled Coal Venture  | Nathaniel Rothschild told Bloomberg Markets magazine about his ill-fated partnership with the Bakrie family in the coal mining company Bumi. “I am the first to admit we made a terrible mistake,†he said. BLOOMBERG MARKETS
Standard Chartered Says First-Quarter Profit Likely Declined  |Â
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The Challenges Ahead for HSBC Â |Â The chief executive has sought to make the bank simpler and smaller. The question now is how many more strings he has left to pull, Peter Thal Larsen of Reuters Breakingviews writes. REUTERS BREAKINGVIEWS
Investors and Founders of Apollo Plan to Sell Shares  | Big investors of Apollo Global Management, in addition to two of the founders of the private equity firm, are selling a portion of their shares, Reuters reports. REUTERS
China Dairy to Buy $410 Million Stake in Milk Producer  | China Mengniu Dairy is buying a stake of 26.92 percent in China Modern Dairy Holdings from K.K.R. and CDH Investments, Reuters reports. REUTERS
Pleased by Apple’s Move, Einhorn Raises His Bet  | David Einhorn said on Tuesday that his firm had raised the size of its Apple holdings. The move came after Apple agreed to quintuple the size of its stock buyback program and increase its dividend. DealBook »
A Word of Caution on Tips From Hedge Fund Gurus  | “Investors who bought on the basis of top tips from one of New York’s most celebrated hedge fund conferences last year spectacularly failed to beat the market,†The Financial Times writes. FINANCIAL TIMES
Coty Said to Seek $700 Million in I.P.O.  | Coty is seeking to raise about $700 million in its forthcoming initial public offering, a person briefed on the matter said on Tuesday. It is likely to seek to go public within the next month. DealBook »
ING Plans I.P.O. of European Insurance Unit  | The Dutch financial services firm ING Group said on Wednesday that it was planning an initial public offering of its European insurance business in 2014. DealBook »
Khosla Ventures Invests in Health Technology Company  | HealthTap, whose service connects people with doctors, said on Wednesday that it raised a $24 million financing round led by Khosla Ventures. PRESS RELEASE
White Makes Case for Bigger S.E.C. Budget  | Mary Jo White testified before a Senate Appropriations subcommittee to outline her agency’s need for a bigger budget. DealBook »
Ruling Clears Way for A.I.G. Suit Against Bank of America  | A California judge has opened the door for the American International Group to pursue a fraud claim of more than $7 billion against Bank of America for losses it suffered on mortgage securities sold under duress after the federal government rescued A.I.G. in 2008, Gretchen Morgenson reports for The New York Times. DealBook »
Oreck Files for Bankruptcy  | The vacuum maker Oreck filed to begin a process that could give control of the company back to its founder, David Oreck, and his family, The Wall Street Journal writes. WALL STREET JOURNAL
More Support for European Bank Plan  | “Two top E.U. finance officials gave a push forward to efforts to overhaul governance of the region’s banks, easing concerns that the bloc is failing to move swiftly enough to avoid future crises that could sink the euro,†The New York Times reports. NEW YORK TIMES
O’Melveny & Myers Hires 3 Senior Bankruptcy Lawyers  | O’Melveny announced on Tuesday that it had hired John Rapisardi and George Davis, the co-chairs of the bankruptcy practice of the law firm Cadwalader Wickersham & Taft, as well as Peter Friedman, a Cadwalader partner based in Washington. DealBook »
A Settlement for Investors in Fannie Mae  | The New York Times reports: “Fannie Mae, the government-sponsored mortgage finance company, and KPMG, its former auditor, have agreed to pay $153 million to investors who bought Fannie’s stock from 2001 to 2004, a period when Fannie’s regulator determined the firm had overstated its income and violated generally accepted accounting principles.†NEW YORK TIMES
