Former Pfizer Inc PFE CEO Ian Read and ex-CFO Frank D’Amelio have decided to distance themselves from the activist campaign led by Starboard Value at the pharmaceutical giant.
What Happened: Read and D’Amelio made their decision public on Wednesday. They expressed their full support for Pfizer’s current CEO, Albert Bourla, in a joint statement issued through an investment bank. The two former executives had been in communication with several directors just before news of Starboard’s stake emerged, reported CNBC.
“We are confident that over time they will deliver shareholder value,” Read and D’Amelio said of Pfizer’s current board and management. This development comes at a time when Pfizer’s board is dealing with the activist’s efforts, and just before Starboard’s Jeff Smith was scheduled to meet with CEO Bourla.
Why It Matters: Starboard, known for its tenacious activism, has built a stake of around $1 billion in Pfizer. The fund’s managing member, Smith, has previously launched campaigns at Autodesk and Salesforce in recent months.
Price Action: Pfizer Inc. stock closed at $30.19 on Wednesday, gaining 3.46% during the regular trading session. In after-hours trading, the stock dipped slightly by 0.20%. Year to date, Pfizer’s stock has risen by 1.55%, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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