ELAN - Elanco Animal Health gains on speculation of potential activist

Elanco ( NYSE: ELAN ) rose 5.5% on speculation that the animal health company could be a possible activist target.

Olin's ( OLN ) announcement on Thursday that Scott Ferguson, head of activist fund Sachem Head, was leaving the board may give the investor time to look at other potential proxy fights, Dealreporter speculated in an item on Friday.

Ferguson stepped down from the board of Elanco ( ELAN ) in September to focus on the hedge fund’s other commitments, Elanco announced at the time. A day later Sachem Head disclosed a ~6% stake in the company. Elan shares gained 6.8% that day.

Sachem Head originally disclosed a stake in Elanco ( ELAN ) in October 2020, a stake that was valued at the time at $1.2 billion. Elanco added Ferguson to its board in December 2020 and Sachem Head agreed to certain voting and standstill provisions.

Dealreporter highlighted that Ferguson's resignation at Olin came about two weeks after the expiration of Sachem Head's standstill agreement with Elanco ( ELAN ).

Elanco ( ELAN ) shares have dropped more than 55% since Ferguson originally joined it's board in December 2020.

Elanco ( ELAN ) reported Q3 results on Tuesday.

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