Last two years ago, Starboard Value LP was spun off as a separate hedge fund. The company has been gaining a reputation as an aggressive shareholder activism, pushing for change in AOL and Office Depot Inc. to mention a few.
The company also gained a quick reputation in Silicon Valley as a corporate raider. Starboard is initially investing in small cap value companies with technology firms as its target. This includes Agilysys Inc., Openwave Systems and Extreme Networks Inc. to name a few.
Recently, the New York based fund grew appetite for bigger and more diverse firms. Its latest campaign is driven on the biggest pork produce in the world, Smithfield Foods Inc. The hedge fund is in a move that could scupper China's largest acquisition of a US company.
The hedge fund is urging Smithfield to explore a breakup rather than pursue that US$4.7 billion sale to Shuanghui International. The activist shareholder is Smithfield's biggest shareholder with 5.7% stake that is valued around 29% to 64% than the US$34 per share piece offered by Shuanghui.
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