Masimo activist Quentin Koffey says he’ll pursue litigation if the health-tech company doesn’t provide information on a proposed spinout of a…
Masimo activist Quentin Koffey says he'll pursue litigation if the health-tech company doesn't provide information on a proposed spinout of a business unit. Koffey said the company demanded directors sign a non-disclosure agreement to get basic information on the deal.
Koffey won a seat on Masimo's board in a 2023 proxy battle, and is expected to pursue a second fight for additional control. Koffey, who won a seat on Masimo's board last year through a proxy fight, said that, despite his"repeated requests," he has"not received information as basic and fundamental as even the name of the contemplated JV partner," weeks after the company Masimo acquired consumer audio company Sound United in 2022 for $1 billion, a deal that led to a 37% drop in its stock price the day of the announcement. The purchase was a catalyst for Politan's first proxy fight at the company. Koffey said in his letter that Masimo management has asked"that directors sign a non-disclosure agreement" to get access to information around the deal. Koffey, who's gearing up for ato get full control of Masimo's board, warned Kiani that if the company delayed or denied his request, he would pursue legal action. The activist is also seeking information on any financial and leadership opportunities Kiani has been promised at the spinout. The business units Masimo is proposing to spin off are expected to generate between $700 million and $780 million this year, according to the company's most recent guidance.Masimo CFO Micah Young said on a call with analysts on Tuesday that executives are working"diligently" and will present their findings on the deal structure and joint venture partner to the full board in the coming months. A spokesperson for Politan declined to comment beyond the content of the letter. Representatives for Masimo weren't immediately available for comment. Politan is Masimo's second-biggest shareholder, with about 9% ownership, trailing only Fidelity. Kiani is the largest individual investor, with a 7.5% stake in the company. Masimo shares are up 2.4% this year, closing Wednesday at $120.02. They plummeted 49% in 2022 and another 21% last year.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
San Quentin inmates send off puppies they raised to become service dogs alongside crowdSan Quentin inmates said raising puppies to become service dogs gave them an avenue to do good and has helped change their lives.
Read more »
Quentin Tarantino’s ‘Kill Bill’ Was Inspired By This Japanese ActressDaniel Cruse is a writer at Collider who focuses on crime films, classic movies, action, martial arts, and horror cinema.
Read more »
San Quentin trainers teach future service dogsA year after a local nonprofit launched a service dog training program at the former state prison, the program graduated its first puppies
Read more »
San Quentin resident Gerard Trent paroled after 53 years while facing triple life sentencesAfter serving 53 years of continuous incarceration in California prisons, Gerard Trent Jr., 78, paroled in October 2023 from San Quentin Rehabilitation Center.
Read more »
Quentin Dupieux Puts the “Ick” in His Satirical YannickIt takes a stand against the attitude that, if the exhibit doesn’t move you, the exhibitor owes you a refund. Our Yannick review:
Read more »
10 Quentin Tarantino Projects That'll Never Happen If The Movie Critic Is His Final FilmCollage of Quentin Tarantino, Chris Pine in Star Trek, and the cover art of Forty Lashes Less One
Read more »