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)

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!