(Bloomberg) -- A group of Grifols SA investors including Flat Footed LLC, Mason Capital Management LLC and Sachem Head Capital Management LP is seeking a seat on the Spanish drugmaker’s board.
The investors manage a combined stake of 7.7% of Grifols class A shares and say they want to exercise their statutory right to name a director, according to a press release. “We are doing so with the goal of maximizing shareholder value and improving corporate governance, for all shareholders,” the group said in the statement.
The three firms want Paul Herendeen to represent them as director, and sent a letter to the Grifols board on Thursday. If appointed, Herendeen would fill one of two vacant seats left by Claire Giraut and Carina Szplika, who stepped down from the board in July.
Grifols and investors are currently waiting for Brookfield Asset Management and the Grifols family to place a joint offer to take the drugmaker private, after talks between the parties were disclosed in July. The family and associates control about 30% of the company.
“While we appreciate the rationale of improving Grifols’ operational and financial performance in the private market, we feel strongly that any takeover should be consummated at a price that is fair for all shareholders and accounts for the current market valuation disconnect,” the investor group said in the press release.
A spokesperson for Grifols declined to comment.
Tension over the price Brookfield and the family may offer has been building up since the approach was announced in early July. Some Grifols investors have hired law firm Araoz & Rueda to help avert an offer that might be deemed too low.
Meanwhile, the board of Grifols is seeking to hire a consultancy firm to help it deal with minority investors.
Grifols’ voting shares, known as class A, rose 0.2% in Madrid on Thursday to close at €10.075, giving the company a market value of €6.4 billion ($7.1 billion). Class B shares closed at €8.10. Grifols’ American depositary receipts rose 3.8% to $9.075 at 3:54 p.m. in New York.
The company’s market value has slumped this year after short seller Gotham City Research accused the firm of manipulating its accounts. Grifols has denied any wrongdoing.
Mark Carney, chair of Brookfield Asset Management, is also chair of Bloomberg Inc.
(Updates with details on the board in third paragraph, possible takeover approach in seventh.)
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