The Special Situation Report #159: 4/27 Roundup
Summary of the Week in Special Situations
Table of Contents:
Update on Developing M&A
Update on Shareholder Activism
Update on Other Special Situations
Announced M&A
C-Suite Sudden Departures
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Update on Developing M&A
ConnectM (CNTM): SRISID disclosed ownership of 7.55 million shares, or approximately 15.1% of ConnectM's outstanding common stock. (Press Release)
Guess? (GES): Authentic Brands Group is considering launching a rival takeover bid for American clothing company Guess?. (Bloomberg)
SpringWorks Therapeutics (SWTX): Germany’s Merck KGaA is nearing a roughly $3.5 billion deal for SpringWorks Therapeutics. (WSJ)
Rumors
Golden Ocean (GOGL): Signed a term sheet with CMB.Tech (CMBT) for a proposed stock-for-stock merger, with Golden Ocean shareholders to receive 0.95 CMBT shares per share with CMB.Tech as the surviving entity. (Press Release)
Update on Shareholder Activism
Aurinia Pharmaceuticals (AUPH): MKT Capital and Lucien Selce urge CEO Peter Greenleaf’s resignation and further reforms at Aurinia, citing governance and transparency concerns ahead of the 2025 AGM. (Letter)
Autodesk (ADSK): Will appoint Jeff Epstein and Christie Simons, from the Starboard nominees, to its Board in connection with a cooperation agreement with Starboard Value. (Press Release)
Bausch Health (BHC): Billionaire Carl Icahn has a total economic exposure of about 34% to Bausch Health's common shares. While Icahn owns a 9.4% stake in the company, he has exposure to an additional 24.6% through cash-settled equity swap agreements. (Filing)
BP (BP): Elliott Management is pressing BP to increase its free cash flow by an additional 40% through deep cuts to spending, as the activist investor upped its stake in the energy group to more than 5% and sharpened its criticism of the company. (FT)
ESSA Pharma (EPIX): BML Investment Partners sent a letter to the Board expressing its belief that an orderly wind down, liquidation, and capital return are in the best interests of the shareholders of the company. (13D Filing)
Kenvue (KVUE): Dan Loeb’s Third Point Capital has built a stake in Tylenol and Neutrogena maker Kenvue, the third activist hedge fund to target the consumer health group after Starboard Value and Toms Capital. (FT)
Penn Entertainment (PENN): Will nominate Johnny Hartnett and Carlos Ruisanchez to the Board, proposed by dissident investor HG Vora Capital Management, which has criticized the company’s foray into online betting. (Press Release)
Rapid7 (RPD): Jana Partners is seeking to nominate Kevin Galligan, a Partner and Director of Research at Jana, to the Board effective April 22, 2025. (13D Filing)
Servotronics (SVT): Beaver Hollow Wellness urged shareholders to vote for its nominees—Paul Snyder, Christine Marlow, Michael Dolpp, and Charles Alfiero—to restore accountability and shareholder value at Servotronics. (Press Release)
Update on Other Special Situations
Intel (INTC): Intel has decided not to proceed with the planned spin-off of Intel Capital. During its Q1 2025 earnings call, CEO Lip-Bu Tan announced that the venture arm will remain within the company. (Seeking Alpha)
Continental (CTTAY): Continental announced that its Automotive division will be renamed Aumovio ahead of a planned spin-off in September. (Press Release)
Lionsgate (LGF.A): Lionsgate shareholders have approved the planned full separation of Lionsgate and Starz into two independent, publicly traded companies. Post-split, Lionsgate will trade on the NYSE under “LION,” and Starz will trade on the NASDAQ as STRZ. (Filing)
DuPont (DD): DuPont has filed an initial Form 10 with the SEC for the planned spin-off of its Electronics business, currently listed as Novus SpinCo1, Inc. ("ElectronicsCo"). The spin-off is expected to be completed by November 1, 2025, pending customary approvals. (Filing)
Announced M&A
Target / Acquirer – Approximate Transaction Enterprise Value, Expected Closing
Financial Services
HarborOne Bancorp (HONE) / Eastern Bankshares (EBC) - $796.78M, Q4 2025 (Press Release, Merger Agreement)
Pacific Premier Bancorp (PPBI) / Columbia Banking System (COLB) - $2B, H2 2025 (Press Release, Merger Agreement)
Sudden Departures
“Sudden Departures” highlights executive exits announced with short notice, where the executive is expected to leave within 30 days.
Cassava Sciences (SAVA): Chief Medical Officer James W. Kupiec resigns effective May 9, 2025. (Filing)
Coherus Biosciences (CHRS): Chief Commercial Officer Paul Reider resigns effective April 30, 2025. (Filing)
DarioHealth (DRIO): Chief Financial Officer Zvi Ben-David resigns effective May 15, 2025. (Filing)
Franklin Covey (FC): Chief Financial Officer Stephen D. Young resigns effective May 1, 2025. (Filing)
Farmers National Banc (FMNB): Chief Accounting Officer Joseph W. Sabat resigns effective May 2, 2025. (Filing)
Gold Resource (GORO): Chief Operating Officer Alberto Reyes resigns effective April 21, 2025. (Filing)
Inspirato (ISPO): Terminates President David Kallery effective April 22, 2025. (Filing)
i80 Gold (IAUX): President and Chief Operating Officer Matthew Gili resigns effective April 30, 2025. (Filing)
MSC Industrial Direct (MSM): Chief People Officer Elizabeth Bledsoe resigns effective May 7, 2025. (Filing)
NewtekOne (NEWT): Chief Financial Officer Scott Price resigns effective April 22, 2025. (Filing)
Nova Lifestyle (NVFY): Chief Executive Officer and President Thanh H. Lam resigns effective April 21, 2025. (Filing)
Repay Holdings (RPAY): Chief Financial Officer Timothy J. Murphy resigns effective May 15, 2025. (Filing)
Red Robin Gourmet Burgers (RRGB): President and Chief Executive Officer G.J. Hart resigns effective April 24, 2025. (Filing)
Spire (SR): Terminates President and Chief Executive Officer Steve Lindsey resigns effective April 24, 2025. (Filing)
Weatherford International (WFRD): Chief Financial Officer Arunava Mitra resigns effective April 21, 2025. (Filing)
Wellgistics Health (WGRX): Chief Financial Officer Vishnu Balu resigns effective April 22, 2025. (Filing)
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