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Paul Singer, founder of Elliott Management, talking at Offering Alpha in New York on Sept. 13, 2016.
David A. Grogan | CNBC
Crown Castle declared Thursday that CEO Jay Brown is retiring, the exact working day activist fund Elliott Management sent a letter calling for a new chief govt as aspect of a marketing campaign for “enhanced governance and fiber-technique improvements” at the cell tower business.
Brown will be replaced by Anthony Melone, a Crown Castle board member, on an interim basis, the business stated in a release. The board is conducting a lookup for a lasting successor.
Elliott launched its marketing campaign in late November, pushing for “in depth leadership adjust” to tackle “long-time period underperformance.” Shares of Crown Castle, a actual estate expense trust, are down 13% this yr, while the iShares International REIT ETF is up virtually 1%.
Elliott beforehand specific Crown Castle in 2020, but stated in a release detailing the latest campaign that the firm “disregarded” the firm’s input and pursued a “worth-damaging strategy.”
In addition to a shakeup in the C-suite, Elliott is also trying to find to carry out bylaw adjustments and a review of Crown Castle’s fiber small business, up to and such as a sale.
Crown Castle describes by itself as 1 of the major communications infrastructure suppliers in the nation. The enterprise controls additional than 40,000 cell towers and rooftop installations. Its inventory is down more than 40% from its 2021 substantial.
Elliott controls a $2 billion stake in Crown Castle. The activist fund launched by Paul Singer has pursued prior strategies at organizations including Twitter and Salesforce. This calendar year, Elliott crafted a $1 billion stake in Phillips 66, and is looking for up to two board seats at the crude refining company.
A spokesperson for Elliott didn’t immediately return CNBC’s ask for for remark.
Enjoy: Elliott normally takes $1 billion stake in Phillips 66
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