Huntsman Jumps on Report Starboard Has Big Stake in It By Investing.com
By Dhirendra Tripathi
Investing.com – Huntsman stock (NYSE:) rose 5.3% in Tuesday’s premarket trading on a report in The Wall Street Journal that activist hedge fund Starboard holds a more than 8% stake in the chemicals producer.
The company produces several chemicals, which are used in construction materials, plastics and cars.
Investors reinvesting their capital in value stocks to increase the stock’s performance was another factor that contributed to its rise.
At Huntsman’s market cap of $6.23 billion as of close Monday, Starboard’s the stake is worth around $500 million.
The company’s stock has slightly under-performed the broader market in the last year, rising about 31% against S&P 500’s near-35% gain.
The hedge fund is one of the most visible activist investors on Wall Street, holding seats on the boards of companies like Papa John’s and NortonLifeLock (NASDAQ:). According to the report, it is not yet clear what changes Starboard will push at Huntsman.
In other news at the company, Huntsman said it has formed a joint venture with KPX Chemical (KS:) to make specialty polyurethanes in South Korea for supply to the country’s carmakers.
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