Actionable news
All posts from Actionable news
Actionable news in PRGO: PERRIGO COMPANY PLC,

Perrigo CEO Says Review Ongoing, Activist Starboard Takes Stake

  • Starboard has called for sale of prescription drugs unit
  • Shares gain Monday, had lost 40% since Mylan bid failed

Perrigo Co. Chief Executive Officer John Hendrickson said he’s still conducting a strategic review and that decisions about the drugmaker are coming, after activist fund Starboard Value LP took a 4.6 percent stake in the company.

Starboard is run by investor Jeff Smith and has a history of agitating for changes at target companies. In a letter dated Monday, he criticized “operational and financial missteps’’ by Perrigo after it rebuffed Mylan NV’s takeover attempt last year. The fund’s position is worth about $585 million, as of Friday’s closing price.

“When I came on board, we immediately started the process, frankly because of the circumstances of with where we are at,” Hendrickson said. The CEO said he’s dividing assets based whether they generate or lose cash, and will likely divest the losers.

He spoke at an investor conference in New York hosted by Morgan Stanley. He wouldn’t comment directly on Starboard’s seven-page letter, which includes proposals to explore a sale...