Activist hedge fund Starboard targets benefits services provider Alight (updated)

Alight

22/02/2024 03:49

(Adds Starboard's stake in paragraph 1, candidates' experience
in paragraph 2 and names of the candidates in paragraph 5)
    By Svea Herbst-Bayliss
       Feb 21 (Reuters) - Activist hedge fund Starboard Value
built a 7.8% 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, the firm said in a regulatory
filing on Wednesday.
    Starboard has nominated three independent candidates and one
of its own executives with experience in staff management,
corporate strategy, strategic transformation and public company
governance as nominees, the filing said.
        The regulatory filing confirms Reuters' earlier story
that Starboard had built the stake and nominated candidates.  
    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 filing said Starboard, one of the industry's busiest
activists, nominated Keith Dorsey, Matthew Levin, Coretha
Rushing and Starboard partner Gavin Molinelli.
        Alight's board currently has nine members. The filing
said Starboard expects three directors to stand for election at
the annual meeting "and if that remains the case, Starboard has
indicated that it would withdraw one of its nominees."
        Details of Starboard's plans for the company could not
be immediately learned.
    Spokespeople for Starboard and Alight were not immediately
available for comment.
    Alight shares fell 3% on Wednesday to close 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, Marguerita Choy and Sonali Paul)
 ((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters
Messaging: greg.roumeliotis.thomsonreuters.com@reuters.net))