Avantor shares rose almost ten percent on Monday after activist investor Engine Capital Management pushed to either streamline operations or sell the Radnor-based chemical and lab gear maker, writes Joseph N. DiStefano for The Philadelphia Inquirer.
The company’s stock had recently been trading at its lowest value since 2019 when it went public. By the end of Monday, the stock settled around $12.10.
Avantor directors, led by chairman Bruce Peacock, former CEO of Amgen, said that they believe the company is already on track to deliver better results and showed no intention of giving in to demands by Engine.
Headed by veteran investors Brad Favreau and Arnaud Ajdler, activists told Avantor directors in a letter that a more active board could raise the share price to twice its value over the next two and a half years. Cutting costs, selling some of its businesses, and instigating share buybacks could also assist.
Favreau and Adjler emphasized that Engine owns around three percent of Avantor, which is enough to rally other investors not satisfied with the company’s results.
Read more about activists and Avantor having some opposing views but wanting the best for the company in The Philadelphia Inquirer.
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