Hedge Fund Founder Rosenstein Joins Walgreens’ Board

September 9, 2014 Debbie Jacobs Company Spotlight

Jana Partners founder Rosenstein joining board of Walgreens

Jana Partners founder Rosenstein joining board of Walgreens

Walgreens, the country’s largest drugstore chain, named Barry Rosenstein, activist investor and founder of Jana Partners, to join their board of directors. Rosenstein will also get to pick one more director to join him on the board.

The Deerfield, Illinois-based company is feeling pressure from their stockholders since they lowered their earnings forecast based on their recent merge with the giant health and beauty retailer Alliance Boots. AB runs the largest drugstore chain in the United Kingdom. Walgreens’ share price dropped since they lowered their earnings forecast a month ago. They also put on hold the decision to do an overseas reorganization which would have reduced their US tax obligation.

Walgreens stated that Jana Partners will be recommending another independent director who is not connected to either Jana or Walgreens. If another vacancy opens up on the board and Walgreens decides to fill the position, then Jana and Walrgeens must agree on the candidate.

Jana Funds have a 1.3 percent stake in Walgreens, about 12.5 million shares. If the holding falls below 6.3 million shares then, according to the agreement, Rosenstein will resign from the board.

Barry Rosenstein, Jana Partners, Walgreens,

Comments are currently closed.

Powered by WordPress. Designed by elogi.