The Activist Game: It's Not Just for Hedgies - WSJ.com

Everyone is getting into the activist world because it works and provides a competitive edge for better operating companies.

Big-name mutual-fund managers such as Morgan Stanley, Fidelity Investments, T. Rowe Price Group Inc. and Oppenheimer Funds Inc. increasingly have been protesting merger deals and pushing to change corporate boards.

Practical considerations are driving the change. Mutual funds are facing tough competition for business from hedge funds and private-equity firms, which squeeze out extra returns by taking active approaches to the companies in which they invest. At the same time, acquisition premiums have remained low despite the merger boom.