Starboard Value Seeks Board Seats at Knife River Corp
Starboard Value is preparing to nominate directors to Knife River Corp to force higher profit margins or a company sale.
Activist hedge fund Starboard Value is preparing to nominate directors to the board of Knife River Corp to pressure the construction materials company into improving profit margins or pursuing a sale. The fund recently acquired a significant stake in the Bismarck-based company following a 24% decline in its stock price over the past year.
Starboard is urging Knife River to increase its profit margins to 22% by fiscal year 2029. The fund notes that the company's current margins of approximately 15% lag significantly behind rivals, some of whom have reached roughly 30%.
Knife River management expressed confidence in its existing strategy and leadership in a public filing. However, Starboard leadership maintains that the company requires a clear plan and decisive action to address years of underperformance.
