(Bloomberg) — Elliott Management Corp., the activist investor firm, has taken a large position in drug distributor Cardinal Health Inc. and is seeking seats on the company’s board, Dow Jones reported, citing people familiar with the matter.
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The investment firm nominated five directors to Cardinal’s 11-person board roughly two weeks ago, before Cardinal announced that Chief Executive Officer Mike Kaufmann would step down, Dow Jones said, citing the people familiar with the matter. Cardinal said last week that Kaufmann would be replaced as of Sept. 1 by Chief Financial Officer Jason Hollar.
Elliott’s intentions in making the investment couldn’t be learned, the news service said. Cardinal is a major distributor of drugs and medical products to hospitals with a market value of more than $19 billion.
Cardinal doesn’t comment on the holdings of individual shareholders, a spokesman said in an email. Elliott didn’t immediately respond to a request for comment.
Dublin, Ohio-based Cardinal’s shares rose 2.2% as of 1:02 p.m. in New York.
(Adds response from Cardinal Health in fourth paragraph)
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