Activist investor ValueAct Capital Management LLC continues to hike its presence in MDS Inc., a Mississauga, Ontario, life sciences company. On Tuesday the fund reported in a Securities and Exchange Commission filing that it owned a 16.8% MDS stake and reiterated that it will continue to “evaluate alternatives” and “monitor” the company’s operations, liquidity requirements and business prospects.
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The activist fund also indicated that it may discuss its thoughts on the company’s operations with others. “Consistent with its investment research methods and evaluation criteria, [ValueAct] may discuss such matters with management or directors of [MDS], other shareholders, industry analysts, existing or potential strategic partners or competitors, investment and financing professionals, sources of credit and other investors,” ValueAct wrote in its filing.
ValueAct in May doubled its MDS stake to 6.6%. Since then it has continued to hike its investment. The California-based activist fund’s efforts come after investors in 2006 pressured MDS to make board changes. MDS is completing a corporate restructuring that may include divestment of a major lab diagnostic unit. ValueAct has agitated for changes at a number of companies, with a specialization in the life sciences sector, and at times seeks to acquire businesses. — Ron Orol
See Schedule 13D filing from SEC
See TheDeal.com: MDS to buy Molecular Devices
See TheDeal.com: MDS sells diagnostics biz for $1.2B
Ron Orol is a Washington-based reporter for The Deal and author of Extreme Value Hedging: How Activist Hedge Fund Managers Are Taking on the World.
