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(Reuters) -Activist hedge fund Starboard Value built a 7.8% stake in Alight and has nominated four people to the U.S. benefits services provider’s board of directors in a push for changes, the firm said in a regulatory filing on Wednesday.
Starboard has nominated three independent candidates and one of its own executives with experience in staff management, corporate strategy, strategic transformation and public company governance as nominees, the filing said.
The regulatory filing confirms Reuters’ earlier story that Starboard had built the stake and nominated candidates.
Earlier on Wednesday, Alight disclosed fourth-quarter earnings and 2024 forecasts that missed analysts’ expectations, and also announced it had hired financial advisers to carry out “a strategic portfolio review.”
The filing said Starboard, one of the industry’s busiest activists, nominated Keith Dorsey, Matthew Levin, Coretha Rushing and Starboard partner Gavin Molinelli.
Alight’s board currently has nine members. The filing said Starboard expects three directors to stand for election at the annual meeting “and if that remains the case, Starboard has indicated that it would withdraw one of its nominees.”
Details of Starboard’s plans for the company could not be immediately learned.
Spokespeople for Starboard and Alight were not immediately available for comment.
Alight shares fell 3% on Wednesday to close at $9.29, giving the company a market value of about $5 billion.
Alight helps business, including many Fortune 500 companies, manage health benefits for employees and offers payroll solutions.
Previously owned by private equity firm Blackstone (NYSE:BX), Alight listed in the stock market three years ago by merging with a blank-check acquisition vehicle backed by financial technology investor Bill Foley in a $7.3 billion deal.
