Even in that scenario, the people making that threat are not actually in control. The ones with control are choosing to do this, rather than lose money.
These people are not forced to make more money at the expense of others. It's their choice.
These people are not forced to make more money at the expense of others. It's their choice.
Don't be that kid.
If the threat is that unloading a position will cause a dip in shareholder value of $X, but those actually in control believe their own thesis and operating model is worth more than $X, then they can choose to weather the storm, believing their way will negate the loss of $X.
If they really don't have an answer to the activist investor's thesis, then yea, they'll roll over.