Dive Brief:
- Walgreen Co. has tapped Barry Rosenstein, founder and managing partner of hedge fund Jana Partners, to its board. Jana will name a second director as well, the companies said. The activist investment firm holds just 1% of the company’s stock.
- Jana Partners had urged the drugstore retailer to move its headquarters overseas to save some $780 million in taxes, but the company has announced it is staying put.
- Jana will also advise the company on filling any future board vacancy and is working with the retailer on cutting costs, merchandising, and stock purchase plans.
Dive Insight:
Jana Partners didn’t get its way on the topic of Walgreen Co.’s so-called tax inversion but, with these board appointments, it has bolstered its influence at the retailer despite its relatively small investment. Barry Rosenstein reportedly has other strong opinions about steps the drugstore retailer should take, saying it should take a page from the playbook of U.K. retailer Alliance Boots GmbH, which Walgreen is acquiring.
