Cars.com nearing settlement with Starboard
15 March 2018 - 12:00 am UTC
Cars.com [NYSE:CARS] and activist Starboard Value are understood to be close to reaching a settlement that will contemplate a refresh of the company’s board of directors.
Starboard disclosed a 9.9% stake in the Chicago-based online auto classified company in December, arguing it would attract the interest of financial sponsors in a sale process. The activist has since adjusted its stake as Cars.com’s stock has rallied to give the company a USD 2.1bn market cap.
This news service reported in January that financial sponsors have been evaluating the company following Starboard’s campaign, but the report said that Cars.com’s high valuation is an impediment to a potential buyout.
Starboard subsequently nominated a slate of four directors for appointment at the company’s 2018 annual general meeting (AGM) scheduled for 18 May.
Cars.com and Starboard did not return requests for comment.
