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Splunk 10K Alerts To Possible Activist Involvement

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Splunk 10K Alerts To Possible Activist Involvement

A notable language change in Splunk Inc (NASDAQ: SPLK)’s Wednesday night 10-K filing alerted investors to possible activist involvement in company operations.

Potential activist focuses include "financial restructuring, increased debt, special dividends, stock repurchases or sales of assets or the entire company."

The 2017 10-K included following phrasing absent from the previous year’s filing:

"From time to time, public companies are subject to campaigns by investors seeking to increase short-term stockholder value through actions such as financial restructuring, increased debt, special dividends, stock repurchases or sales of assets or the entire company. If stockholders attempt to effect such changes or acquire control over us, responding to such actions would be costly, time-consuming and disruptive, which could adversely affect our results of operations, financial results and the value of our common stock. These factors could also make it more difficult for us to attract and retain qualified employees, executive officers and members of our board of directors."

The added language essentially fulfilled the company’s legal obligation to warn investors of activist interference.

Shares popped at around 9:35 a.m. ET when the news was first reported on Benzinga Pro.

Splunk's stock traded recently at $63.35, up about 1 percent on the day.

 

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