Shareholder Activist Update: JANA Partners and Neuberger Berman against Charles River acquisition
|June 23rd, 2010||
|Contributed by: Hedge Fund Solutions LLC|
|Last week, activist investor JANA Partners sent a letter to Charles River Laboratories International (NYSE: CRL) highlighting the 35% of shareholders who are opposed to Charles River’s acquisition of a Chinese pharmaceutical company and the combination of the two businesses. Dated June 16, the letter followed JANA Partners’ letter of June 7 in which the activist investor stated its intention to vote against the transaction and expressed its concern about Charles River’s plans to purchase Chinese pharmaceutical outsourcing company WuXi PharmaTech for $1.6 billion. Charles River’s intentions to purchase WuXi were announced on April 26, and soon after, on June 3, Jana met with the Chairman, President and CEO of CRL and the Chairman and CEO of WuXi.|
Neuberger Berman also took an opposing stand against the acquisition in a June 16 letter, changing their filing status from “passive” investor to “active” the same day. The investor cautioned the board not to endorse any revision to the proposed WuXi transaction that bypasses the need for a stockholder vote.
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