Starboard Value has nominated four candidates for the board of eHealth, just days after the online health insurance company gave Hudson Executive two seats in a settlement.
According to a securities filing, Starboard has nominated its own managing director Peter Feld, along with Magellan Health chief operating officer James Murray, and two healthcare private equity veterans Erin Russell and Steven Shulman for election at the annual meeting, expected to be held June.
Starboard said it acquired a 3.7% stake in eHealth because it felt the company was undervalued, but did not provide any indication of its wider intentions beyond nominating directors.
The activist fund headed by Jeff Smith first notified eHealth of its nomination plans on March 11, the same day that the company announced a settlement agreement with Hudson Executive. Under that deal, eHealth appointed former Rosetta Stone CEO John Hass to its board of directors, while a second director was to be chosen following approval by the activist.
In a statement following Starboard’s filing, eHealth said it “has held discussions with Starboard to better understand its views and looks forward to continued engagement,” adding that “the eHealth board is open-minded with respect to value creation opportunities and will continue to take the actions that it believes are in the best interest of eHealth and all of its shareholders.”
EHealth said it will review Starboard’s nominees and give its formal recommendation “in due course.”
EHealth’s stock was trading at around $70 per share in after-hours trading Monday, up about 4%. It closed up almost 5% on the day.