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The Morning Brief: Starboard Appoints Director to Insperity Board
Insperity and Starboard Value reached a compromise agreement whereby John Morphy, a director nominated by the activist hedge fund firm, would be appointed to the board. Insperity’s board also said it would launch a search for an additional independent director. The agreement also calls for the board to make certain changes to the composition of the standing committees. Under the deal, New York-based Starboard agreed to vote all of its shares in favor of Morphy and two company incumbent directors. Insperity is a provider of human resources services.
Morphy previously served for 15 years as chief financial officer of Paychex, a provider of payroll, human resource, and benefits outsourcing services for small to medium-sized businesses. In March, Insperity agreed to appoint two nominees from Starboard — Norman Sorensen and Peter Feld, Starboard’s head of research and a portfolio manager — to its board and to add a third director nominated by Starboard at a later date.
“We continue to see significant value in the company’s premium service offerings and competitive advantage, and we are pleased to have reached this agreement, which we believe will further strengthen the Board of Insperity,” said Feld in the announcement Thursday evening.
North Tide Capital disclosed it owns two million shares of Quorum Health, which operates hospitals. The filing was made in a 13-G, meaning the investment is passive. The Boston-based hedge fund firm, founded in 2010 by Conan Laughlin, specializes health care companies. Last year its fund was down 16 percent. The firm has been known to take activist stakes in companies. Shares of Quorum surged Friday by 3.6 percent, to close at $12.16.
Shares of Valeant Pharmaceuticals International jumped more than 4 percent after the embattled drug maker said it received a default notice from the trustee under one of its senior note indentures because it delayed the filing of its first-quarter report. The company stressed that the notice does not result in the acceleration of any of its debt payments. However, it means Valeant has 60 days to file the report, which will cure the default. Valeant earlier assured investors that it plans to file this quarterly report by June 10, which would be well before the 60-day cure date of July 18.