HomeMarket NewsCatalent Nearing Resolution with Activist Investor Elliott for Board Seats

Catalent Nearing Resolution with Activist Investor Elliott for Board Seats

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Catalent, a contract drug maker listed on the NYSE under the ticker CTLT, is on the verge of reaching a settlement with activist investor Elliott Investment Management. The companyโ€™s stock has seen a sharp decline of nearly 55% in the past year.

Elliott is expected to secure four board seats at Catalent, according to insiders cited in a recent Reuters report. The companyโ€™s board currently consists of 12 members.

Catalent and Elliott declined to provide comments to Reuters.

These developments follow a report from The Wall Street Journal last month, which revealed that Elliott had acquired a significant stake in Catalent and intends to advocate for changes in the companyโ€™s board. The investor is engaging with potential director candidates to form a slate of nominees for a proxy contest.

Catalent has witnessed a drastic decline in its shares, primarily due to various issues such as the departure of its CFO, financial warnings, delays in its quarterly earnings report, and problems with its manufacturing facilities.

Takeover speculation has surrounded Catalent, including talk of a potential acquisition by Danaher. However, Bloomberg reported in April that Danaher is no longer considering such a move. Furthermore, Danaherโ€™s recent acquisition of Abcam for $5.7 billion may decrease the likelihood of an attempt to acquire Catalent.

Source: Benzinga.com

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