Market Overview

I think you’ll love what you hear,
what you’ll see and the opportunities
that will be set before you.
- Jon Najarian
GET TICKETS

Depomed Spikes 17% As Activist Investor Discloses Large Stake

Share:

Shares of Depomed Inc (NASDAQ: DEPO) surged higher by more than 18 percent on Friday after notable activist investment firm Starboard Value disclosed it has taken a 9.8 percent stake in the company.

Starboard Value said in its regulatory filing that it believes shares of Depomed are "undervalued" and represent an "attractive investment opportunity." However, the activist firm added that it has "significant concerns regarding serious corporate governance deficiencies, questionable capital allocation decisions, and egregious actions" the company has taken in regards to its strategic interest."

Starboard Value added that it Depomed also has a "troubling record of egregiously manipulating the corporate machinery to entrench management and the Board and believe that meaningful change is required."

Related Link: Napodano: Depomed Has 90% Upside

In a letter delivered to Depomed's board of directors, Starboard Value further stated, "We have little choice at this time but to immediately commence the process to call a special meeting of shareholders in order to preserve our rights under California law and Depomed's current bylaws."

Finally, Starboard Value said it will commence a search for slate of director candidates that will "ensure an experienced, diverse, and independent board, as has been our practice when proposing alternative board slates over the past fourteen years."

Posted-In: activist investor Dopemed Starboard ValueBiotech News Health Care Movers General

 

Related Articles (DEPO)

View Comments and Join the Discussion!

Grupo Aeroportr Writes To Shareholders Ahead Of Annual Meeting

Benzinga's Top Upgrades