Shares of Pitney Bowes Inc.
PBI,
rallied 4.8% in morning trading Monday, after the shipping and mailing company acknowledged that activist investor Hestia Capital nominated seven people to the company’s board of directors, while saying shareholders need not take any action at this time. The company, which currently has nine board members, said it will review any proper nominations in due course. “The board and management team have engaged in an open and good faith dialogue with Hestia over many months,” the company said in a statement. “Contrary to Hestia’s assertion, Pitney Bowes is always interested in considering well-qualified candidates to join the board.” Earlier Monday, Hestia, which said it was Pitney Bowes’ third largest shareholder with a 7.2% stake, said there was “compelling justification” for seeking a change in control of Pitney Bowes’ board. “Unfortunately for stockholders, that justification lies in the fact that the Board has failed to address a decade of dismal returns, driven by misguided strategy, failed execution and missed opportunities,” Hestia said. Pitney Bowes’ stock has dropped 22.1% over the past 12 months, while the S&P 500
SPX,
has slipped 8.4%.
