Starboard Takes Solstice Stake
Activist investor Starboard Value has disclosed a new stake in Solstice Advanced Materials. Chief Executive Jeffrey Smith argues the company is undervalued and should cut costs by one hundred million dollars while focusing on its core businesses.
Starboard Value disclosed a new stake in SOLSTICE ADV MATERIALS INC on Tuesday, pressing the spin-off to cut $100 million in costs and hold management accountable. The intervention follows a turbulent year for the specialty materials provider since its separation from HONEYWELL INTERNATIONAL INC in the United States. Solstice shares have dropped 30% from their all-time high on June 30, pressured by an aborted $14.5 billion acquisition of ELEMENT SOLUTIONS INC that collapsed on August 27 after shareholder pushback.
