Patient Monitoring Device Maker Masimo Contemplates Separation of Consumer Business As Activist Investor Seeks Expanded Board Presence
Portfolio Pulse from Vandana Singh
Masimo Corporation (NASDAQ:MASI), a patient monitoring device maker, is considering separating its consumer business amid pressure from activist investor Quentin Koffey of Politan Capital Management, who seeks to expand his board presence. Politan, holding a 9% stake in Masimo, nominated two candidates for the 2024 Annual Meeting, aiming to increase its influence. This follows criticism of Masimo's acquisition of Sound United and its strategic direction. The proposed separation includes consumer audio and health products, aiming to enhance healthcare business profitability. Masimo's shares surged 13.7% in after-hours trading.
March 25, 2024 | 12:05 pm
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Masimo Corporation is contemplating the separation of its consumer business following activist investor Quentin Koffey's push for expanded board presence, aiming to enhance the profitability of its healthcare segment.
The consideration to separate Masimo's consumer business is a strategic move likely to be viewed positively by investors, as it aims to focus on the more profitable healthcare segment. The involvement of activist investor Quentin Koffey and the subsequent nomination for additional board seats indicate significant changes in governance and strategy, which could lead to improved operational focus and shareholder value. The after-hours stock price surge of 13.7% reflects positive investor sentiment towards these developments.
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