Starboard Value acquired a significant stake in construction materials firm Knife River Corp. The activist investor is pushing the company to explore a sale or improve profit margins.
Knife River shares fell 7.8% on Wednesday following a presentation on business headwinds. Management cited rising fuel costs and project delays as persistent challenges.
Starboard claims the 2023 spinoff from MDU Resources failed to deliver expected margin growth. The firm believes Knife River’s high barriers to entry make it an attractive acquisition target.
Knife River shares rose 5.3% in after-hours trading following the announcement.