Starboard reduced its stake after losing its election in Huntsman Corp
Key summary: In Oct '21, Starboard cited Huntsman's valuation potential. In Jan '22, it nominated directors. In Mar '22: Huntsman shareholders elected all 10 company nominees. In May '22, Starboard reduced stake to 4.9%.Market Cap: $8 billion | Huntsman Corporation is a global diversified chemicals manufacturer.
Background
In an October 2021 Active-Passive Investor Summit, Starboard issued a presentation stating that there was a significant opportunity for Huntsman to have improved its valuation multiple by accelerating revenue growth and increasing profitability, which should lead to greater value creation for all shareholders.
On January 12, 2022, Starboard filed its Amendment No. 1 to the SC 13D with respect to the company announcing its nomination of a slate of director nominees for election at the annual meeting. Source
On February 10, 2022, Starboard issued a press release and delivered a letter to stockholders highlighting company's history of failed operational execution, long-term stock price underperformance and missed promises. It urged all shareholders to vote FOR its four nominees.
On February 17, 2022, Starboard issued a letter expressing its displeasure to the company in connection with the company's repeated questions and requests for information regarding Starboard and its nominees following the delivery of Starboard's nomination notice to the company. Starboard argued that its nomination notice included all of the information required of Starboard and its nominees pursuant to the Company's Sixth Amended and Restated Bylaws.
On March 1, 2022, Starboard issued a detailed presentation titled "Transforming Huntsman Corporation," outlining Starboard's views on Huntsman, the challenges that plagued the company historically and continue to exist today, opportunities to drive improved performance, and details surrounding Starboard's slate of director nominees.
On March 4, 2022, Starboard issued an open letter to the shareholders highlighting the company's history of failed operational execution, long-term share price underperformance, missed promises, poor governance and compensation practices, and problematic ESG practices. It urges shareholders to vote for its nominees.
On March 7, 2022, Starboard’s director candidate James Gallogly delivered a letter to David Stryker, the Company’s EVP and General Counsel, highlighting various false and misleading statements with respect to Mr. Gallogly’s background and experience that were published by the Company in recent communications and filings.
On March 8, 2022, Starboard issued a supplemental presentation responding to various false and misleading statements and mischaracterizations made by Huntsman in its recent investor presentation.
On March 13, 2022, Glass Lewis recommended that shareholders vote "FOR ALL" of Huntsman's director nominees on the WHITE proxy card at its 2022 AGM. Source
On March 14, 2022, Starboard announced that ISS recommended that shareholders vote on Starboard’s BLUE proxy card to elect Starboard nominees, James L. Gallogly and Jeffrey C. Smith, to the Board.
On March 22, 2022, Egan-Jones recommended shareholders vote on Starboard’s BLUE Proxy Card to elect all four of Starboard’s nominees at upcoming annual meeting. Source
On March 25, 2022, the company announced, based on preliminary vote results provided by its proxy solicitor following the company’s 2022 annual meeting of stockholders, that huntsman shareholders had voted to elect all 10 of its director nominees.
Update
On May 19, 2022, Starboard reduced its stake to 4.9%.