Headline: "D.E. Shaw Rallies Behind Mantle Ridge's Campaign to Revamp Air Products' Board"

In a significant development, the hedge fund D.E. Shaw has decided to support Mantle Ridge's campaign for changes at Air Products and Chemicals, Inc. (NYSE: APD) and has opted not to pursue its own board seat at the industrial gases giant. This decision follows separate calls from both funds for the company's board renewal, a CEO succession strategy, and capital reallocation. They specifically warned about the company's heavy investment in its clean hydrogen strategy.

Previously critical of Air Products for increasing capital expenditures and positioning the company as a higher-risk asset due to strategic shifts, D.E. Shaw has backed away from plans to nominate its own directors. Instead, it has chosen to support Mantle Ridge's efforts. This collaboration was well-received by the market, and news of the united push for change led to a 13% rise in Air Products' stock price.

Led by Paul Hilal, Mantle Ridge is actively working to restructure the leadership at Air Products, aiming to install Dennis Reilley as executive chairman and possibly Eduardo Menezes as CEO. Both Reilley and Menezes have notable experience in the industry, having held senior positions at Linde Plc (NYSE: LIN). Wells Fargo analysts described the potential appointments as a "dream team," suggesting that the inclusion of these figures could significantly bolster Mantle Ridge's campaign.

The collaboration between D.E. Shaw and Mantle Ridge highlights the strategic nature of activist campaigns, where multiple activists target the same company due to apparent weaknesses. This was previously observed in the convergence of several activists on Salesforce (NYSE: CRM) two years ago. However, in this instance, the merging of forces is seen as a means to facilitate the push for change at Air Products and reduce potential public discord among activist investors.