Huntsman says Starboard is forcing company into ‘unnecessary’ proxy fight -Breaking
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© Reuters. By Svea Herbst-Bayliss
BOSTON (Reuters). Huntsman (NYSE:) Corp reacted Wednesday to Starboard Value’s decision to nominate four directors to its board. It stated that they had consulted about key issues but that it is being forced into a “unnecessary boardroom fight” by the activist investor.
Huntsman, a chemical manufacturer, said that Starboard Investments did not constructively help to decide who would serve as director.
Starboard said that they are more interested in installing Huntsman’s hand-picked candidates than allowing Huntsman’s Board and management teams to create shareholder value through multiple initiatives Starboard supports. The Texas-based company released a statement.
Huntsman acknowledged that the company welcomes constructive suggestions from shareholders. However, he said Starboard forces it to enter a distracting and costly “unnecessary” proxy contest.
Huntsman responded to Starboard’s nomination of four directors to its 14-member board, which included Jeffrey Smith, the chief executive, and published a timeline that detailed who did what, when, and how to search for new board members.
Huntsman made changes to the board and appointed new directors just a few days before. These moves were said to be part of its long-term plan for reorganizing it. According to the company, it kept Starboard updated about its plans. Starboard had requested names of potential directors in December. Huntsman claimed that Starboard returned with the names in January.
Starboard didn’t immediately reply to our request for comment.
Although the sides could not agree on directorships, Huntsman stated that they had more positive interactions on other matters.
Huntsman said that “There was and continues to be no misalignment between Starboard and the Company’s objectives and strategic initiatives.”
Huntsman has a market capitalization of $8.2 million and produces chemical products that can be used for everything from plastics to construction materials.
The annual meeting was scheduled for March 25, when the investors can decide who will serve on the board.
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