Business

Turtle Beach rises amid potential ‘war’ with activist investor following board appointment


Men playing video games

Kerkez / iStock via Getty Images

Update 1pm: Update, share, and supplement basic information about board appointments.

Gaming headset maker Turtle Beach (NASDAQ:TO LISTEN) up 3.8% at least in part after an analyst said he saw the appointment of a new director as Potentially declare war on Donerail activist investor.

Turtle Beach (LISTENING)) was announced on Wednesday that they have appointed Terry Jimenez to the company’s board of directors.

Wedbush analyst Michael Pachter wrote in a note: “At face value, the release was benign. “However, this action could constitute a breach of contract and declaration of legal war against the activist shareholder, Donerail.”

Pachter argues that appointing a new director prior to the addition of a Donerail principal could be a potential breach of contract which Turtle Beach and Donerail agreed in May, which includes Donerail not to purchase more than 9.9% of the outstanding shares.

Turtle Beach said in a press release Wednesday that the appointment of Jimenez is to fulfill commitments the company made to Donerail and other shareholders in a partnership agreement in May. Also recall that Jimenez belongs to Donerail nominations for the board back in March.

The parties have been working collaboratively to appoint Jimenez, a person familiar with the matter told Seeking Alpha.

“With the stock trading close to book value, we think Donerail is well positioned to buy a substantial portion of the outstanding shares and will continue its takeover efforts,” said Pachter, whose goals spend better price and $12 on Turtle Beach (TO LISTEN) Written. “Let the battle begin.”

Pachter expects “a lot of noise” over the next few weeks and expects the stock to rise in the coming weeks if Donerail looks to take over.

Donerail did not immediately respond to a Seeking Alpha email request for comment.

The new board appointment comes after Turtle Beach shares fell 32% on August 8 after the company announced that it had ended plans to sell itself.

news7f

News7F: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button