Activist Keith Meister Unloads Large Pfizer (PFE) Position, Takes Stakes in B/E Aerospace (BEAV), Johnson Controls (JCI)

Successful Merger Bet

Corvex Capital found more success with a merger bet in the auto industry. The fund initiated a fresh stake in Johnson Controls Inc (NYSE:JCI), a manufacturer of auto parts, having amassed approximately 2.68 million shares of the company worth in excess of $118 million as of June 30. Johnson Controls Inc (NYSE:JCI) shareholders approved the company’s merger with Tyco International plc (Ireland) Ordinary Share (NYSE:TYC) on Wednesday and the deal is expected to close in September. Like Pfizer, Johnson Controls was looking for a tax-inversion deal to reduce its tax bill. The newly-formed Johnson Controls Plc will be based in Ireland, where the corporate tax rate is 12.5%, compared to the 35% rate in the United States. The companies expect to generate $650 million in savings over the course of three years, including $150 million in annual tax savings. Andrew Feldstein and Stephen Siderow‘s Blue Mountain Capital also held a sizable stake in Johnson Controls Inc (NYSE:JCI) at the end of the second quarter, totaling 3.02 million shares worth $134 million.

B/E Aerospace To Take Off?

Corvex Capital also made a big bet on B/E Aerospace Inc (NASDAQ:BEAV) during the quarter, having acquired a little over 2.7 million shares worth $125 million at the end of June. A manufacturer of aircraft cabin interior products, B/E Aerospace Inc (NASDAQ:BEAV) has a market cap of $4.96 billion and pays an annual dividend of $0.84 per share, providing investors with a 1.76% annual yield. The stock is currently trading at a trailing P/E ratio of 17, slightly lower than the industry average of 18 as per Yahoo! Finance data. In the most recent quarter, the company managed to boost its revenue by 7.6% to $753 million and posted a profit of $0.84 per share, surpassing Wall Street’s expectations of $0.82 per share. B/E Aerospace Inc (NASDAQ:BEAV) has been trading in a range since June, but is still up by 16% for the year. Jonathon Jacobson’s Highfields Capital Management is also betting on this stock, having reported ownership of 4.76 million shares of it in its latest 13F filing.

Bullish On Ball Corporation

With Ball Corporation (NYSE:BLL) consolidating its position in the metal packaging products market, Keith Meister has decided to step up his interest in the company. Corvex Capital’s stake in the company registered a 35% bump during the second quarter, to 3.46 million shares valued at roughly $250 million. Ball Corporation (NYSE:BLL) had a fantastic second quarter, having recorded an 18% increase in earnings to $1.05 per share, topping analysts’ estimates of $0.99 per share, though revenue came in at $2.03 billion, lower than the consensus target of $2.15 billion. Ball Corporation recently completed the acquisition of British can maker Rexam for $6.1 billion, with the combined company now representing 60% of the U.S. beverage-can market and 69% of the European market. According to Ball Corporation (NYSE:BLL)’s projections, the deal will result in $300 million worth of savings per year. Billionaire Ken Griffin‘s Citadel Investment Group initiated a 2.08 million-share position in Ball Corporation during the second quarter, worth $150 million at the end of June.

Disclosure: None