A campaigner investment group, Corvex Management, is getting ready to assign one of its associates to the Kindred board, likely with the goal of pushing for a sale of Kindred.
Corvex obtained a 10% interest in Kindred earlier this year and promptly declared it would urge the operator’s board to seek a sale.
Kindred’s board did take action, but was unable to find a purchaser at a suitable price. iGB understands that some prospective buyers expressed worries about how Kindred would fit into the increasingly common local regulatory markets.
Corvex subsequently expanded its interest, becoming Kindred’s largest shareholder. Following the announcement, Corvex requested the chance to participate in Kindred’s nominating committee, so it could select board members.
Corvex founder Keith Meister was appointed head of the nominating committee, giving him significant sway over board appointments.
Now, the committee led by Meister has selected Corvex associate James Gemmel to join the board. Kindred shareholders will vote on whether to appoint Gemmel at a special shareholder meeting on November 14th.
Initial reports indicated that if Kindred failed to secure a buyer, Corvex could potentially request the departure of Henrik Tjärnström and install a new leadership team to expedite the company’s sale. However, the likelihood of Gemmel taking action remains uncertain.
Gemmel has experience working with the executive boards of Exelon Corporation, Occidental Petroleum, and The Williams Companies. Prior to joining Corvex, he served as an investment analyst at Federated Hermes Inc and an investment analyst at the Prudent Bear Fund of David W Tice & Associates.
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