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Bloomberg
Starboard Value is calling on Cars.com Inc to improve its performance or consider selling itself or making management changes, about nine months after the activist hedge fund reached a settlement agreement with the online auto-dealing platform.
“If shareholders do not see progress soon, then we believe it would be incumbent upon the board to take more substantive actions,†Starboard Chief Executive Officer Jeff Smith said in a letter
to the company that was
obtained by Bloomberg.
Cars.com said in response to the letter that it remains open to dialogue with shareholders, including Starboard, to develop financial targets. It will provide a long-term forecast by February 28, the company said in a statement.
Starboard, which says it owns slightly less than 10 percent of the company, reached a settlement with Cars.com in March that called for three new directors to be appointed to an expanded board. Two of those directors — Michael Kelly and Bryan Wiener — have since joined the board while the parties have yet to reach an agreement on a third director.
As part of the agreement, Cars.com was required to announce revenue and margin targets for each of the next three years by February 28. It must also set the deadline for nominating directors at the 2019 annual general meeting at least 30 days after those targets are announced.