By Svea Herbst-Bayliss
"We are seeking to elect a minority of the Board because wedo not believe that the recent changes at the Company, includingthe agreement with Carl C. Icahn, are sufficient to addressNewell’s subpar operating and financial performance," Starboardsaid in a regulatory filing on Wednesday.
"Poor execution and a series of operational missteps haveresulted in severe share price underperformance," Starboardsaid, adding "the current situation is unacceptable." It ownsroughly 3.8 percent of Newell, the maker of Rubbermaidcontainers and Sharpie markers.
Newell's share price has lost roughly 20 percent sinceJanuary. The stock was up 2.3 percent to
Three weeks ago Icahn reached a settlement with Newell thatimmediately gave him four board seats. Investors will have achance to vote on the directors at next month's annual meeting.The deal was seen undercutting Starboard's campaign.
Weeks before the two sides settled, Starboard, run byJeffrey Smith, announced plans to oust the entire board,including Newell Chief Executive Officer Michael Polk.
Starboard wanted to slow the pace of planned asset sales andstocked its slate with a group of former Newell directors whohad resigned from the board earlier in the year afterdisagreements over strategy.
Starboard is now pressing ahead, listing Smith, Peter Feld,Starboard's head of research, and executives with experience atcompanies ranging from LVMH Moet Hennessy Louis Vuittonto Michael Cos Inc as possible directors.While Starboard is not seeking control, it has not said how manydirectors it plans to run.
Former Newell directors Martin Franklin, Ian Ashman andDomenico DeSole as well as Jim Lillie who previously worked withFranklin, who had been on Starboard's earlier slate. They splitwith Starboard after Newell settled with Icahn.
Franklin did not want to be caught between two activists,people who know him said.
He told Reuters last month that his blank-check acquisitionvehicle J2 Acquisition Ltd might be interested inbuying assets that Newell may sell.
Starboard has been well respected by other investors for itsthoroughly laid-out plans on how to unlock value at targetedcompanies, industry analysts said.
In Wednesday's filing Starboard said the agreement withIcahn gives the "appearance of substantial change," and it ismoving forward to make "sure that the right change is effected."(Reporting by Svea Herbst-BaylissEditing by Jeffrey Benkoe)