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VF (Baa3 Neg, BBB, Neg) € mids continue moving tighter

CONSUMER CYCLICALS

Equities ended +14% yesterday even after a correction (US midday) from Reuters that it was one specific member, Kelly Barbey, that voiced support for Engaged Capital's bid for board changes.

Clarence Otis & Juliana Chugg - the two board directors being targeted by Kelly's remarks - also are co-trustees in one of the main entities that the founding Barbey's 15% VFC family stake is in - PNC trust (10% stake) - & may make removing them more difficult then it seems.* Kelly did not disclose how many shares he holds/what entity they sit in for Reuters. Deadline for VF to nominate directors is reportedly today, no comment from the company thus far.

Equities also seem to have found support from a filing yest. that CEO Darrell purchased ~$1m of shares on Friday (post-earnings).* As we mentioned Yesterday, despite a likely downgrade into HY, we like the € short-end that screens/(ed) cheap post the earning sell-off.

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