Bed Bath and Beyond BBBY responded Tuesday in response to an activist investor group's proxy battle for the company.
What Happened
Three activist investment funds — Legion Partners Asset Management, Macellum Advisors and Ancora Advisors — plan to leverage their new 5-percent stake in Bed Bath & Beyond to launch a proxy battle, The Wall Street Journal reported.
The firms are looking to replace all 12 members of the board of directors and replace CEO Steven Temares who held the job since 2003, sources told WSJ.
Why It's Important
Members of the retailer's board and management have met with Legion and Macellum in recent weeks, while Ancora has not engaged with the company, Bed Bath & Beyond said.
"In these conversations, we made clear our commitment to engaging constructively and acting in the best interest of all Bed Bath & Beyond shareholders," the company said.
"We asked on several occasions for their suggestions and ideas for improving the company's business but they did not provide any."
The retailer said that while its directors and managements sought to engage with the activist investors, "it appears that the Legion and Macellum representatives were merely seeking information to support their attack."
Bed Bath & Beyond is already addressing many of the concerns raised by the activist investors, the company said.
What’s Next
Bed Bath & Beyond said details on its 2019 annual meeting will be filed in its proxy statement with the Securities and Exchange Commission.
The retailer's stock was rallying nearly 21 percent to $16.78 at the time of publication Tuesday.
Related Links:
Barclays Turns Bearish On Bed Bath & Beyond Amid Turnaround Efforts
Bed Bath & Beyond Rallies After Q3 Print, But Analysts Aren't Buying It
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