Activist investor Starboard says it supports Abcam strategic review

Activist investor Starboard Value said it supports Abcam's (NASDAQ:ABCM) announcement that it plans to conduct a strategic review, including a potential sale.

"We’re pleased that both Abcam and Jonathan Milner have committed to exploring strategic alternatives," a representative for Starboard said in a statement on Friday. "While we believe there is a substantial margin improvement opportunity at Abcam, we believe the best risk-adjusted outcome is a sale that maximizes value for all shareholders."

Starboard Value, led by Jeff Smith, took a stake of about 2% in Abcam (ABCM), according to a Sunday Times report earlier this month.

Abcam (ABCM) shares jumped 12% on Friday as the company said it's formally reviewing its strategic option after receiving takeover interest.

The announcement came after Abcam (ABCM) said a week ago that it had received strategic interest from multiple parties in recent weeks, sending its shares soaring 17% last Friday.

The news comes as the company has been involved in a proxy battle with Jonathan Milner, founder of Abcam (ABCM) and a former director of the company with a 6.3% stake in the biotech firm. Milner last month said he plans to call an extraordinary general meeting to try to win election to the board as executive chairman.

Starboard Value, known as one of the biggest activist investors in the U.S., has taken stakes in Salesforce (CRM), Splunk (SPLK) and Wix.com (WIX) in the past year.

More on Abcam

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• Abcam: Nosebleed Valuations, Flat Growth Profile Justify Hold Rating
• Activist Starboard Value accumulates stake in British biotech Abcam - report