According to a recent 13D filing with the US Securities and Exchange Commission, Jeff Smith‘s Starboard Value LP has acquired a valuable position in Depomed Inc (NASDAQ:DEPO) owning 4.14 million shares, which account for 6.8% of the company’s outstanding stock.
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In addition, the investor revealed his concerns about the board’s intentions to strengthen themselves instead of working on achieving the maximum value for all shareholders. The filing added that since 2015 Starboard Value LP was following changes at the Depomed Inc (NASDAQ:DEPO) when the company initiated shareholder-unfriendly practices to discourage Horizon Pharma PLC (NASDAQ:HZNP)’s attempt to arrange an acquisition of the company for at least $33.00 per share. It was announced that Starboard Value LP will recommend one or more candidates for the position of the director, in order to assure a new board that would be more inclined to the shareholders’ benefits.
Depomed’s stock jumped on the back of the news regarding Starboard’s involvement, since the fund is known for its track record of successfully reforming companies such as Darden Restaurants. The company issued a statement in response to Starboard filing and said that:
“Depomed welcomes open communications with its shareholders and values constructive input toward the goal of enhancing shareholder value. Depomed notes that Starboard has not communicated with the Company prior to filing the 13D and has not attempted to hold any discussions with the Company. Depomed’s Board and management are committed to creating value for all Depomed shareholders.”
Overall, 23 of the hedge funds tracked by Insider Monkey were long this stock at the end of the last year, down by 28% over the quarter. In addition to Starboard, other shareholders of Depomed Inc (NASDAQ:DEPO) include Richard Mashaal’s Rima Senvest Management, Kevin Kotler’s Broadfin Capital, Matthew Mark’s Jet Capital Investors, Paul Sinclair’s Blue Jay Capital Management, and Joseph Edelman’s Perceptive Advisors.
You can access the original SEC filing by clicking here.
Ownership Summary Table
| Name | Sole Voting Power | Shared Voting Power | Sole Dispositive Power | Shared Dispositive Power | Aggregate Amount Owned Power | Percent of Class |
|---|---|---|---|---|---|---|
| STARBOARD VALUE | 4,140,000 | 4,140,000 | 4,140,000 | 4,140,000 | 4,140,000 | 6.8% |
| STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD | 3,189,313 | 4,140,000 | 3,189,313 | 4,140,000 | 3,189,313 | 5.2% |
| STARBOARD VALUE AND OPPORTUNITY S | 377,502 | 4,140,000 | 377,502 | 4,140,000 | 377,502 | Less than 1% |
| STARBOARD VALUE AND OPPORTUNITY C | 209,844 | 209,844 | 209,844 | Less than 1% | ||
| STARBOARD VALUE R | 209,844 | 209,844 | 209,844 | Less than 1% | ||
| STARBOARD VALUE R GP | 209,844 | 209,844 | 209,844 | Less than 1% | ||
| STARBOARD VALUE GP | 4,140,000 | 4,140,000 | 4,140,000 | 6.8% | ||
| STARBOARD PRINCIPAL CO | 4,140,000 | 4,140,000 | 4,140,000 | 6.8% | ||
| STARBOARD PRINCIPAL CO GP | 4,140,000 | 4,140,000 | 4,140,000 | 6.8% | ||
| JEFFREY C. SMITH | 4,140,000 | 6.8% | ||||
| MARK R. MITCHELL | 4,140,000 | 6.8% | ||||
| PETER A. FELD | 4,140,000 | 6.8% | ||||
| GAVIN T. MOLINELLI | 0% | |||||
| PATRICK SULLIVAN | 0% | |||||
| JAMES P. FOGARTY | 0% |
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Page 1 of 35 – SEC Filing
(Name, Address and Telephone Number of Person
