Hedge fund JAT pushes Overstock.com to mull options -filing

Neighborhood Intelligence

16/10/2023 17:51

By Svea Herbst-Bayliss
       NEW YORK, Oct 16 (Reuters) - Hedge fund JAT Capital on
Monday urged Overstock.com  OSTK.O  to consider selling certain
assets and overhauling its management and compensation, warning
it may seek board seats if its suggestions are ignored, a
regulatory filing on Monday showed.
    The hedge fund, run by John Thaler, owns a 9.1% stake in
Overstock.com, and made its demands public in the filing after
sending a letter outlining its wishes to the company last week.
    Overstock's stock price climbed nearly 9% after the filing.
        Overstock.com, which spent $21.5 million to buy certain
intellectual property assets from Bed Bath & Beyond a few months
ago, did not immediately respond to a request for comment.
  
        JAT is not traditionally an activist investor but its
filing signaled mounting frustration with the company and left
open the option of pursuing strategies like running a proxy
contest.   
    JAT also wants the company to emphasize stock option
participation and develop a business plan with financial
objectives, the filing said.
    "The Reporting Persons may consider to seek Board
representation to the extent the above recommendations have not
been explored, pursued and executed satisfactorily."


 (Reporting by Svea Herbst-Bayliss; Editing by Richard Chang)
 ((svea.herbst@thomsonreuters.com; +617 233 2138; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))