Cantillon typically meets with the senior management of a company in the normal course of our research. If there are issues of concern that have not been adequately answered during these meetings, and which we feel warrant escalation, we would discuss internally the most appropriate form of escalation. This escalation may involve a further meeting with the company, or, if the issue has already been discussed at length and not satisfactorily resolved, we would typically write to the Chairman or CEO of the company. The issue which we are most likely to escalate is the use of cash: in the past we have written to companies urging them to return excess cash to shareholders.
Escalation does not always lead to the desired outcome. If this is the case, we will consider whether the company's approach undermines our investment thesis. If it does, we will sell the stock.