JANA Partners Slightly Reduces Stake in URS Corp (URS); Appoints Four Directors to the Board

JANA Partners, led by Barry Rosenstein, has disclosed in a newly amended filing with the SEC that it has reduced its position in URS Corp (NYSE:URS) to some 6.75 million shares, from 7.29 million disclosed earlier. The fund has sold around 543,000 shares at an average price of $46.23 per unit, the filing stated. Following the decrease, the activist stake amasses 9.4% of the company’s common stock, edging down from 9.7%.

Barry Rosenstein JANA PARTNERS

Moreover, according to a press release attached to the filing, JANA Partners signed an agreement with URS Corp (NYSE:URS), under the terms of which, URS Corp will add four new independent directors, effective March 27. The new directors are: Diane C. Creel, William H. Schumann, III, David N. Siegel and V. Paul Unruh. Following the increase, the board of URS will consist of 14 members. The parties also agreed that URS will recommend the stockholders to vote for JANA’s nominees and “will recommend that the stockholders of the Issuer vote to elect the JANA Nominees at the 2014 Annual Meeting.”

At the same time, the agreement states that URS Corp (NYSE:URS) will form a Value Creation Committee, consisting of four members (two of which will be from newly appointed directors), which will analyze the company’s business and find solutions that will increase the shareholder value, like engaging an investment bank to conduct a strategic review of the company.

JANA partners went activist on URS Corp (NYSE:URS) earlier in February, after adding 100,000 shares to its position in February. The fund reported that it intends to enter into discussions with the company’s management regarding potential moves that can increase the value for shareholders. The stock of URS has been declining amid disappointing results for the fourth quarter of 2013 and guidance for 2014 that is below the consensus estimates.

As we stated in an earlier article, URS Corp, last year said that by 2015, it plans to buy back stock and pay out dividends in the total amount of $500 million, which will be taken from its free cash flow. Taking into account that the company will pay around $60 million in dividend payments per year, the share repurchase would amount to around $380 million (11% of the market cap). With the  largest amount of the shares bought back this year, the next year EPS should increase considerably.

Moreover, several significant investors have boosted their positions in URS Corp (NYSE:URS), as showed the latest round of 13F filings. For example, David Einhorn‘s Greenlight Capital, raised its stake by 16% to nearly 1.3 million shares. Richard S. Pzena’s Pzena Investment Management, added 3% to its stake and now holds 1.1 million shares, and Clifton S. Robbins’ Blue Harbour Group has disclosed a new stake in the company, which amasses around 1.1 million shares and accounts to almost 4% of its equity portfolio.

Disclosure: none

Recommended Reading:

Steven Cohen, SAC Increase Stake in Annie’s Inc (BNNY)

Kyle Bass Says Why He is Bullish on General Motors Company (GM) and Nationstar Mortgage Holdings Inc (NSM)

Michael Novogratz’s Fortress Investment Trims Stake in Cardiome Pharma (CRME)

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!