SUBJECT AREAS: Activism, Conflicts of interest, Corporate governance, Hedge funds, Real estate, Valuation. British Land's shares traded below NAV. Laxey investments tried to force British Land into share buybacks and criticized its corporate governance. Laxey voted borrowed shares at the AGM

We investigate how colluding asymmetric firms divide markets. We provide conditions under which, contrary to conventional wisdom, the efficient firm gains more from collusion, while the inefficient firm is more tempted to defect. Both anti-trust investigations and leniency policies have the...