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Starboard reportedly buys 5.8% stake in Symantec and seeks 5 board seats

Jeffrey Smith, Starboard Value
David Grogan | CNBC

Activist investor Starboard Value has taken a 5.8 percent stake in Symantec and is seeking five board seats at the cybersecurity company, The Wall Street Journal reported on Thursday.

Starboard privately named its nominees in June after buying the stake worth about $670 million, the Journal said, citing sources.

According to Starboard, Symantec needs operational changes to improve margins, especially in its business-facing segment, the Journal said.

Starboard says its nominees could help improve operations as well as amend issues with financial reporting, and the suggested members include a former chairman of antivirus company AVG Technologies and a former Intuit executive, the Journal reported.

Symantec, which is in the midst of an internal accounting probe, saw its first-quarter revenue falling 1.6 percent, hurt by weaker demand from companies.

Starboard and Symantec were not immediately available for comment outside of regular business hours.

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