Activist Starboard seeks to nominate directors to Box board

Jeffrey Smith, CEO of Starboard Value LP and Chairman of Papa John's International Inc., speaks during an interview on CNBC on the floor of the NYSE in New York
FILE PHOTO: Jeffrey Smith, CEO of Starboard Value LP and Chairman of Papa John's International Inc., speaks during an interview on CNBC on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 22, 2019. REUTERS/Brendan McDermid

May 3, 2021

(Reuters) -Starboard Value LP plans to nominate directors to the board of cloud services provider Box Inc, the activist investor said on Monday, saying the company had fallen short on meeting expectations of profitable growth.

Starboard, which owns about 7.7% of Box, said the company had failed to capitalize on the work-from-home trend during the COVID-19 pandemic as many of its cloud computing peers have done.

Box did not immediately respond to a request for comment.

Starboard, led by hedge fund veteran Jeffrey Smith, has pushed for changes at several technology companies including chipmaker Marvell Technology Group Ltd, ON Semiconductor Corp, cybersecurity firm NortonLifeLock Inc and internet services firm Yahoo Inc.

Box said last month private equity giant KKR & Co Inc would lead a $500 million investment in the company weeks after Reuters reported Box was exploring a sale amid pressure from hedge fund Starboard Value LP.

(Reporting by Uday Sampath in Bengaluru; Editing by Shailesh Kuber and Ramakrishnan M.)