Algonquin Power & Utilities Corp. has attracted Starboard Value LP after another activist investor publicly called for an asset sale on Monday, according to people with knowledge of the matter.
(Bloomberg) — Algonquin Power & Utilities Corp. has attracted Starboard Value LP after another activist investor publicly called for an asset sale on Monday, according to people with knowledge of the matter.
Starboard has held amicable discussions with the Canadian utility for weeks, one of the people said, asking not to be identified discussing private information. The size of Starboard’s stake and the changes it is seeking from the company couldn’t be immediately learned.
A spokesperson for Algonquin declined to comment. Starboard didn’t immediately respond to requests for comment.
Algonquin announced on Monday that it was terminating a $1.5 billion deal to buy Kentucky utilities from American Electric Power Co. after US regulators rejected the transaction.
Read more: AEP Scraps Sale of Kentucky Units After Regulator Rejection (1)
Activist investor Ancora Holdings Group in a public letter on Monday said that it approved of that decision and called on the company to accelerate a plan to sell $1 billion in assets. Ancora also said it’s a “meaningful shareholder” of the company.
The holding period and size of Ancora’s stake couldn’t be learned.
Starboard Chief Executive Officer Jeffrey Smith was named in January to the board of another Canadian company, Ritchie Bros. Auctioneers Inc. Starboard made a $500 million investment that helped Ritchie win shareholder approval in March for its $6 billion takeover of IAA Inc.
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