Activist Shareholder Blasts Dye & Durham M&A Strategy
- Engine Capital describes Canadian company as “laughingstock”
- Firm argues that management should focus on paying down debt
This article is for subscribers only.
An activist shareholder is taking aim at Canadian software firm Dye & Durham Ltd.’s decision to pursue more mergers and acquisitions, demanding independent directors “stop the shenanigans” and call a special meeting as soon as possible.
Engine Capital Management LP managing partner Arnaud Ajdler said his firm was “blind-sided” by Dye & Durham’s plans for two acquisitions totaling C$69.3 million ($51 million), accounting for 7.5% of the company’s market capitalization. He said the transactions go against previous commitments to reduce debt, which shareholders had asked for.