WHEN: Today, Monday, April 13th between 9am-12pm ET
Following are excerpts from the unofficial transcript of CNBC EXCLUSIVE interviews on CNBC's "Squawk on the Street" and "Squawk Alley" today. Video from the interviews will be available at CNBC.com.
All references must be sourced to CNBC.
Barry Rosenstein, Jana Partners Managing Partner
ROSENSTEIN ON QUALCOMM DEAL
We've made our biggest commitment to a company that we think has tremendous potential and tremendous value. This is an opportunity to invest in a market leader, high quality company, dominant company in its space in the fast-growing cell phone mobile smartphone space.
ROSENSTEIN ON QUALCOMM SPLIT
We've had very constructive discussions with this company. We've met with them multiple times. We are convinced that the board and the management recognize their issues. We're convinced that they are trying to do the right things and we're optimistic that they're going to. We have advocated a number of steps not just to split up and in fact what we think they ought to do is a transparent review of the combined businesses and determine whether or not it makes sense to do either a partial or full split.
ROSENSTEIN ON PROXY FIGHT
I can't tell you what's going to happen a year from now, but we've had very constructive discussions with the company. I'd be surprised if we can't come to some common ground because I think they're looking at things the right way. As you well know, we've had a lot of success over the years prosecuting "activists" positions without getting into big battles with companies.
ROSENSTEIN ON WALGREENS
The Walgreens situation is terrific. You've got a board that's well meaning, that recognized there were problems and they needed to address them. They invited me to go on the board when I suggested they needed some representation from people with healthcare experience and with cost-cutting experience. They welcomed it which is why we didn't have any fight. They agreed to let me put three people on the board.
ROSENSTEIN ON SELLING TWENTY PERCENT STAKE
We viewed it as a stamp approval on an institutionalization of activism. It gave us an opportunity to bring in a passive partner, but at the same time increase our exposure to our firm. We invested 100 percent of the after-tax proceeds back into the fund and we created a pool for all of our employees.
ROSENSTEIN ON QUALCOMM DEAL GOING PUBLIC
We would've preferred to do that, but we filed for confidential treatment with our 13F. It became public, it was going to become public, and so we felt that what we needed to do was to characterize the conversations correctly which are constructive and it was going to become public anyway.
Ed Garden, Trian Partners CIO
GARDEN ON BLOATED STRUCTURE
We do it the right way, which is by making sure that the businesses compromised upon become best in class operations. Best in class sales growth, best in class margins, and they are not that today. We'll get that fixed, David, and we'll do it by fixing the bloated, expensive, bureaucratic corporate overhead and corporate structure.
GARDEN ON GENERATING SHAREHOLDER VALUE
I think what you are seeing is a CEO who is saying, "for my money, I have no confidence in my plan." At Trian we have 2 billion invested, we've put our money where our mouth is. We have high conviction that we can generate that kind of shareholder value.
GARDEN ON BOARD SEAT
In June of 2014, they announced that they were going to miss materially. At which point, we called Sandy and said, "look, the way to solve this, because – we can't be passive any longer while you continue to falter. We'll take one seat on the board, we have a long track record of being constructive as board members." We said, "what about Nelson," and they said, "we want anybody but Nelson." So that's how we ended up where we are.
GARDEN ON R&D
Something is wrong on the R&D front, something's wrong. With a Trian principal on the board, working with perfect information, we'll get to the bottom of it and we'll get it fixed.
Keith Meister, Corvex Founder
MEISTER ON ACTIVISM
Will activism change over the next several years? Of course it will. But the general concept of value investors having ideas, partnering with companies, expressing ideas, and helping to create value. I don't think that is a fad. I think that's a multi-decade thing. Now how it gets expressed at different times, I think that's the piece that changes.
MEISTER ON GREAT IDEAS
We have a lot of great ideas, they just don't always happen to be new ideas or some of our ideas don't happen to be active ideas. We want to invest in great businesses going through change, so I am thrilled to own Actavis. Am I going to do anything as an activist in Actavis, of course not, but I think I am an activist CEO.
Jeffrey Smith, Starboard Value CEO
SMITH ON YAHOO
We want them to focus on improving the operations of the business, we want them to focus on also spinning off or doing something with Yahoo Japan. There's also some IP value, there is some real estate value, there are some other assets here. It's an incredibly attractive valued asset.
SMITH ON IMPROVING BUSINESS
I don't think people really understand what happens when you get involved inside a company and when you get on a board. You really do work very well with the management team and really do try to create value by improving the operations of the business.
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