Activist hedge fund Starboard targets benefits services provider Alight

Alight

21/02/2024 21:52

(Adds background on Alight, share reaction)
    By Svea Herbst-Bayliss
       Feb 21 (Reuters) - Activist hedge fund Starboard Value
has amassed a stake in Alight  ALIT.N  and has nominated four
people to the U.S. benefits services provider's board of
directors in a push for changes, people familiar with the matter
said on Wednesday.
    Starboard has nominated three independent candidates and one
of its own executives as directors, the sources said. 
    Starboard's exact plan for Alight could not be learned.
Earlier on Wednesday, Alight disclosed fourth-quarter earnings
and 2024 forecasts that missed analysts' expectations, and also
announced it had hired financial advisers to carry out "a
strategic portfolio review."
    The sources requested anonymity because Starboard has yet
gone public with its position in Alight. Spokespeople for
Starboard and Alight were not immediately available for comment.
    Alight shares ended trading on Wednesday down 3% at $9.29,
giving the company a market value of about $5 billion.
        Alight helps business, including many Fortune 500
companies, manage health benefits for employees and offers
payroll solutions.
  
        Previously owned by private equity firm Blackstone
 BX.N , Alight listed in the stock market three years ago by
merging with a blank-check acquisition vehicle backed by
financial technology investor Bill Foley in a $7.3 billion deal.
  

 (Reporting by Svea Herbst-Bayliss in New York
Editing by Greg Roumeliotis and Marguerita Choy)
 ((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters
Messaging: greg.roumeliotis.thomsonreuters.com@reuters.net))