Activist Starboard prepares to nominate directors at Knife River, sources say
KNF•Starboard Value is preparing to nominate directors to Knife River’s board as it presses the company to improve margins or consider a sale. Starboard wants margins of 22% by fiscal 2029; Knife River reported about 15% for the quarter ended June 30.
1. Board nominees planned
Starboard Value is preparing to nominate directors to Knife River Corp’s board, people familiar with the matter said. The fund has lined up some candidates and is continuing to identify others.
2. Margin demands
Starboard has urged Knife River to raise margins to 22% by fiscal year 2029, or put itself up for sale. Knife River reported margins of about 15% for the quarter ended June 30, while rivals have expanded theirs to roughly 30%.
3. Company response
Knife River said in a filing that it remains focused on margin expansion and profitable growth and is confident in its leadership and strategy. Starboard first disclosed its investment last month, when Jeffrey Smith urged the company’s CEO and board to produce a clear plan and take decisive action.
