Surprise No. 14: Procter & Gamble splits apart into three separate companies and Avon Products is courted.

Another activist hedge fund investor joins Bill Ackman's Pershing Square and acquires a large position in Procter & Gamble ( PG). Under pressure from an expanding shareholder group, Procter & Gamble decides to split into three separate entities. The shares rise by $7-$10 a share on the announcement.

As was the case of Procter & Gamble, several activist investors pressure Avon Products ( AVP) to consider being acquired.

Strategy: Long PG and AVP and out-of-the-money calls.

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