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San Francisco-based Marcato's stake is valued at
$688 million, making it the biggest position of the $3 billion
firm, according to the filing, which details holdings at the end
of the third quarter.
Marcato's announcement comes just months after activist investor
Nelson Peltz' Trian Partners said in June that it had taken a
position valued at $1.05 billion stake in the company and wanted
to talk to management about improving shareholder value.
BNY Mellon's management has been criticized by analysts and some
investors for a lagging stock performance and rising operating
expenses.
Its shares have lagged the S&P 500 index over the past five
years, rising 44 percent against the benchmark's 87 percent
rise. But this year, the bank's stock has gained 13 percent,
besting the benchmark's 10 percent gain.
On Thursday, investors trimmed some intraday losses after the
news of Marcato's stake was released, leaving it off 1.26
percent at $39.24.
The company is streamlining operations and has sold off its
corporate headquarters. It is also exiting its derivative sales
and trading business and is selling corporate trust operations
in Japan and Mexico.
Analysts, however, were largely disappointed when management
laid out targets at last month's investor day, its first in
three years. Earlier this year, CLSA analyst Mike Mayo had also
urged the company to consider spinning off its asset management
division.
Marcato, run by former Pershing Square Capital Management
partner Richard McGuire, is also invested in Sotheby's where it
has been pushing management for changes.
A spokesman for Marcato was not immediately available for
comment.
(Reporting by Svea Herbst-Bayliss, editing by G Crosse)
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