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"The casual observer can hardly comprehend the value-extracting power of hedge fund activists. Technically, they are no more than minority shareholders. Yet they exert enormous influence, often forcing these companies to undertake fundamental restructuring and to increase stock buybacks and dividends substantially. For instance, Third Point Management and Trian Fund Management, holding only 2% of the outstanding stock of Dow Chemical and DuPont, respectively, engineered a merger-and-split of America's top two chemical giants at the end of 2015 that resulted in both massive layoffs and the closure of DuPont's central research lab, one of the first industrial science labs in the United States."

Under the program, expected to be rolled out this week, companies will also face unwelcome curbs on stock buybacks, dividend payments and executive pay. And the sheer length of time it has taken to start the program - two months - has already forced many firms to seek alternatives. That has left industries divided, with manufacturers eager to tap the loans but retailers wanting more, as many businesses face the prospect of extensive layoffs or even bankruptcy.