Advertisement
Advertisement
EHealth Settles with Starboard, Hands One Board Seat to Activist
By:
BOSTON (Reuters) - Insurer eHealth Inc sidestepped a possible proxy contest with Starboard Value LP by giving the activist investor one board seat two months after Starboard nominated four directors, two sources familiar with the matter said.
In this article:
By Svea Herbst-Bayliss
The two sides settled on handing the seat to James Murray, president and chief operating officer at Magellan Health Inc. He was one of Starboard’s nominees.
Starboard, which owns 7% of eHealth, said in a regulatory filing in March that it felt the company’s stock was undervalued. At that time, eHealth said it had held discussions with the activist and was “open minded.”
Starboard’s nominations came after eHealth had settled with another activist, Hudson Executive Capital, which had also said the share price was undervalued.
The stock price has fallen 13% since January, closing at $61.39 on Wednesday.
EHealth has been run by Scott Flanders since 2016 and during this tenure, the stock price has climbed 365%.
During the first quarter of 2021, Starboard launched two new campaigns and won five board seats.
(Reporting by Svea Herbst-Bayliss; Editing by Lincoln Feast.)
About the Author
Reuterscontributor
Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV. Learn more about Thomson Reuters products:
Did you find this article useful?
Latest news and analysis
Advertisement