Activist investor Jana takes stake in Wolfspeed, urges sale | Wilnesh News

Activist investor Jana Partners establishes ‘significant’ position among semiconductor companies Wolf speed He also called on the company to address the “alarming erosion of shareholder value”, including even a sale.

The activist disclosed the position in a letter to Wolfspeed’s board of directors on Monday, seen by CNBC, writing that the semiconductor company’s “differentiated manufacturing capabilities” and “U.S. suppliers supporting the energy transition” Status gives it great intrinsic value. Jana Partners also wrote in the letter that management’s missteps in capital allocation, execution and strategy contributed to the stock’s decline.

Reuters first reported news of Jana’s stance, and Wolfspeed’s stock price soared nearly 9%. Still, the company’s shares are down more than 70% from their 2021 highs.

Jana called on the board to develop and execute on metrics and key milestones for Wolfspeed’s two wafer fabrication facilities in Mohawk Valley and Siler City, and to establish a “clear financing path” for future spending, including CHIPS Act funding.

The campaigner noted that Wolfspeed’s 10-year total shareholder return was -61%, compared with a median TSR of 331% for its self-selected peer group.

Wolfspeed (formerly Cree) is a supplier of electronic components and semiconductors used to manage electrical power, often in automobiles. It also sells materials used to produce such wafers.

The campaigner also said Wolfspeed’s board should “immediately” begin a comprehensive review of the business leading up to a sale. Jana cited multiple analyst reports that highlighted Wolfspeed’s M&A potential, both through its subsidiaries and the business as a whole.

Jana was founded in 2001 by Barry Rosenstein. Scott Ostfeld becomes Jana’s managing partner in 2023. Jana has also worked at Trimble and telecommunications company Frontier.

— CNBC’s Kif Leswing contributed to this report.