Masimo jumps 10% as Politan plots another proxy fight

investing.com:

On Monday, Politan Capital Management said it intends to nominate two more directors to Masimo Corp 's (NASDAQ:MASI) board, after securing two seats last year, the Wall Street Journal reported earlier in the day.

MASI stock surged more than 10% at the market open on Monday.

This decision could signal the beginning of another proxy fight at the medical device company Holding close to a 9% stake in Masimo, Politan has proposed William Jellison, the former CFO of Stryker, and Darlene Solomon, the former CTO of Agilent Technologies, as its board nominees.

Owned by Quentin Koffey, Politan has been vocal in its criticism of Masimo's capital allocation and board governance, especially taking issue with the company's $1 billion acquisition of Sound United, a consumer audio products manufacturer, in 2023.

Last week, Masimo revealed it's considering a spinoff of its consumer business division, which encompasses consumer health and audio products. While Politan supports this plan, it is pushing for an additional two seats on the board to ensure greater oversight of this process.

«When shareholders overwhelmingly elected Michelle Brennan and me to the Masimo Board last year, we were optimistic we could work productively with the rest of the Board,» Koffey said in a statement.

«Unfortunately, our efforts were continually rebuffed, as Chairman & CEO Joe Kiani refused to give us basic information,» he added.