(Bloomberg) -- Activist investor Starboard Value is expected to win seats for all eight of its board nominees at GCP Applied Technologies Inc. in a shareholder vote slated for Thursday based on preliminary figures, according to people familiar with the matter.
The New York-based hedge fund, which owns a 9% stake in GCP, had been seeking to replace the bulk of the chemical maker’s 10-person board to improve it performance. It’s unclear which directors from the company’s slate will round out the remainder of the board, the people said, asking not to be identified because the matter is private.
The meeting is still expected to be held Thursday despite the numbers indicating a win for Starboard, the people said. The numbers are preliminary and may still change.
A representative for GCP declined to comment. A representative for Starboard couldn’t be reached for comment.
Starboard won two GCP board seats last March after threatening a similar proxy fight. GCP subsequently launched a strategic review, including a potential sale, that failed to find a buyer. It has since implemented cost cuts and other measures, including replacing its chief executive officer.
The activist investor said in a letter to GCP shareholders this week it believed there were still tremendous opportunities to drive operational, strategic and financial improvements at GCP that will position it to be best-in-class in its industry.
Starboard’s efforts garnered the support of GCP’s largest shareholders, David Winter and David Millstone, who own 24.4% of GCP through their firm Standard Industries Inc. and the private investment platform 40 North Management.
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