- Hedge fund Starboard Value, which owns about 8.4 percent of Box, has launched a fierce proxy war. It wants investor representation on Box's board. Shareholders meet Sept. 9.
- Box said that it will beat expectations when it reports Aug. 24. This was likely done to sway the vote Box's way. Regardless of earnings, the vote matters more.
- Perceived threats by Starboard and rumors of a Box sale have caused Box shares to rise more than actual Box business events (including earnings) have.
- If Starboard does not win enough board seats to make a difference in September, Box shares could fall because investors may not want more of the same. Conversely, Box believers could sell if the CEO is ousted.
For further details see:
Box's Behavior In The Starboard Value Proxy Fight Makes It A Less Attractive Investment