Pitney-Bowes wins against Hestia Capital
2022.11.21 10:50
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Pitney-Bowes wins against Hestia Capital
Budrigannews.com – Portions of Pitney Bowes (NYSE:)are up 3% in early Monday trading as a result of Hestia Capital’s disclosure in a 13D filing with the SEC of a 6.9% activist stake.
Hestia Capital, whose substantial gains in GameStop (NYSE:) are well-known,considers Pitney-Bowes stock to be undervalued and has held private discussions with the company’s management and board of directors regarding capital allocation, enhancing operational performance, and altering the composition of the Board.
A source let Reuters know that notwithstanding reexamining its capital distribution, Hestia needs the organization to rethink its online business technique.Additionally, it has suggested that an underperforming segment might be sold.
Sources added that Hestia sees Pitney-Bowes shares trading between 70% and 80% below what its divisions would be worth on their own.
In the event that the Global Ecommerce segment’s performance does not improve, Hestia has suggested that the board look into selling it.Additionally, the hedge fund suggested that Pitney Bowes concentrate on cash-generating segments like its mail aggregation business, Presort Services, and its postage meter business, SendTech Solutions.
The present 13D from Hestia showed the asset began building its situation in late September and has been purchasing in the mid-$2s to mid-$3s per share.
