Exclusive: EHealth settles to starboard and gives the activist a seat
By Svea Herbst-Bayliss
BOSTON (Reuters) – Insurer eHealth Inc bypassed possible proxy competition with Starboard Value LP by granting the activist investor a seat on the board two months after Starboard appointed four directors.
The two sides decided to hand over the seat to James Murray, President and Chief Operating Officer of Magellan Health (NASDAQ 🙂 Inc. He was one of the Starboard nominees.
Starboard, which owns 7% of eHealth, announced in a March filing that the company’s stock was undervalued. At the time, eHealth said it had conversations with the activist and was “open-minded”.
Starboard’s nominations came after eHealth came to terms with another activist, Hudson (NYSE 🙂 Executive Capital, who also said the stock price was undervalued.
The share price has fallen 13% since January, closing at $ 61.39 on Wednesday.
EHealth has been operated by Scott Flanders since 2016 and during that tenure the share price has risen 365%.
In the first quarter of 2021, Starboard launched two new campaigns and won five board memberships.
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