Boston, MA 09/09/2014 (wallstreetpr) – A chain of retail drugstore operator in the U.S., Walgreen Company (NYSE:WAG) has struck an agreement with hedge fund company paving the way for the induction of its founder, Barry Rosenstein into the board. The company has also given its permission to Jana Partners to appoint another person as Director.
Agreement With Jana Partners
As part of inducting Rosenstein into the board, Walgreen Company (NYSE:WAG) has struck a Nomination and Support deal with the hedge fund company, Jana Partners, Walgreen said in a statement. The appointment of another Director by the hedge fund company would be subject to Walgreen’s agreement. Also, another Director selection would be made only in case of any vacancy and that the company decides to appoint a Director, which should be a mutually agreed person. In other words, if the company decides not to appoint any Director even if there is any vacancy, the question of appointing another Director does not arise.
The company, which would merge with the Britain-based Alliance Boots, said that it intends to hold an investor day immediately after the merger consummation to provide greater insight on the financial outlook and the business strategy to its investors.
Victory For Hedge Fund
There has been a lot of pressure on the company to induct Jana Partners founder in to its board as the hedge company and other investors have demanded Walgreen to reduce its costs significantly even as it faced headwinds, New York Times reported.
Walgreen Company (NYSE:WAG) has also revised its earnings forecast downwards that further hurt the sentiments of investors.
The hedge fund company and other investors have also forced Walgreen to abandon its plan of renouncing its U.S. citizenship in avoid higher tax bill. The politicians have taken a strong exception to the U.S. companies’ move to reincorporate overseas and called strict measures to curb such practices.
The company is scheduled to announce its financial results for the fourth quarter on September 30.
