Reporting by Svea Herbst-Bayliss; Editing by News Gate Team
Sources with knowledge of the issue claim that activist investment fund Starboard Value LP has amassed a sizable stake in Rogers Corp (ROG.N) and is competing for board seats in an effort to bring about change.
The board’s challenge comes after DuPont (DD.N), a chemical firm, withdrew from a $5.2 billion acquisition of Rogers in November because it was unable to obtain Chinese regulatory approval for the merger. The agreement was first disclosed in late 2021.
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The sources, who asked to remain anonymous because the situation is private, claimed that Starboard, which is managed by Jeffrey Smith, has been growing its position in Rogers to be close to 5% and has informed the company that it will nominate at least three members to the 10-member board.
It was impossible to know right away what Starboard had in mind for the business. Requests for response from Rogers and Starboard went unanswered.
Materials for electronics and wireless infrastructure are produced by Rogers, a company founded in 1832.
After the DuPont agreement was abandoned, the company’s stock price fell, and it has down 47% over the past 52 weeks. Rogers now has a market worth of $2.8 billion as the stock increased 22% since the year 2023 began as the whole market rose.
Since the DuPont agreement failed, the corporation has undergone adjustments. This year, the elastomeric material solutions division of Rogers’ Colin Gouveia was promoted to CEO. According to the company’s website, Bruce Hoechner, the former chief executive who left at the end of last year, will leave the board at the end of March.
Recently, Starboard has placed wagers on the cloud computing software provider Salesforce (CRM.N), the software provider Splunk (SPLK.O), and the website builder Wix.com (WIX.O).
Reporting by Svea Herbst-Bayliss; Editing by News Gate Team
