Activist investor Donerail to vote against Stratasys acquisition of Desktop Metal

Stratasys

21/09/2023 23:28

By Svea Herbst-Bayliss
       NEW YORK, Sept 21 (Reuters) - Activist investor Donerail
Group, which owns shares in Stratasys  SSYS.O , on Thursday said
it will vote down the company's plan to buy Desktop Metal  DM.N 
next week, the latest twist in a years-long drama over
consolidation of the 3D printing industry.    
    Donerail Group's managing partner William Wyatt, who
cemented his activist investment skills at Starboard Value, made
his firm's voting plan public one day after influential proxy
advisory firm Institutional Shareholder Services on Wednesday
urged shareholders to reject the deal on Sept. 28.
    He also said his firm would prefer a proposed plan by 3D
Systems  DDD.N  to buy Stratasys and criticized the Stratasys
board for rejecting that proposal.
    "We intent to vote AGAINST" the Stratasys deal "given the
multitude of clear value-creating options that do exist," Wyatt
said in a release. In a letter written in June, Wyatt said his
firm owned 2.3% of Stratasys. 
    Stratasys last week turned down 3D Systems' s  DDD.N  bid to
buy the company, sticking instead with plans to make its own
acquisition. 
    ISS on Wednesday surprised many investors and analysts when
it weighed in on a rival offer that had been rejected, saying
the stock and cash offer from 3D Systems for Stratasys would be
a more convincing route to value creation .
    Donerail agreed, writing "ISS questioned critical matters
that, we believe, speak to the Board’s inability to act as
fiduciaries and properly oversee Stratasys management."
    Representatives for Stratasys declined to comment.
    Stratasys investor Nano Dimension, which owns 14.1% of the
company, said last week that it would vote against the merger.

 (Reporting by Svea Herbst-Bayliss; Editing by David Gregorio)
 ((svea.herbst@thomsonreuters.com; +617 233 2138; Reuters
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