SINA Strikes Back at its Activist Investor
Back in September, US hedge fund Aristeia Capital challenged SINA (NASDAQ: SINA), one of China's oldest internet companies, in a rare activist move against a Chinese company. Aristeia, which owns a 4.2% stake in SINA, believes that SINA's current board has become too "entrenched", and that "critical governance failures" caused the stock to be undervalued.
Aristeia wants SINA to expand its five-member board to directors to seven seats with two of its own nominees. It also wants SINA to maximize the value of its stake in Weibo (NASDAQ: WB) -- the social media platform it spun off via an IPO in 2014 -- through a sale or a reverse merger. It then wants SINA to return that cash to shareholders through bigger buybacks.
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Source: Fool.com
