Depomed Inc (DEPO) stock was up on Friday following news that Starboard Value has taken a 9.8% stake in the company.
Starboard is an activist hedge fund that is looking to add six of its own candidates to Depomed’s Board of Directors. The group is seeking to keep the company from moving to Delaware and putting new rules into place that would give investors less power.
Starboard also said that Depomed’s successful attempt to fend of Horizon Pharma PLC’s (HZNP) hostile takeover was bad for investors. DEPO said it’s open to talk with its investors, but that Starboard hasn’t reached out to it, reports The New York Times.
Jeffrey Smith, CEO of Starboard, said that Depomed is currently undervalued. He believes that efforts need to be made to change this and this could include a possible sale of the company.
DEPO shares were up 12% as of Friday morning.
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