(Reuters) -Activist Starboard Value bought a roughly $500 million stake in Autodesk, and is pushing for changes at the design-software maker, the Wall Street Journal reported on Sunday, citing people familiar with the matter.
Starboard thinks the company should improve its margins and make changes to its board, the report said, adding that the activist investor met with Autodesk executives in recent weeks to discuss concerns related to the company’s operations, corporate governance and the handling of a recent accounting probe that tanked the stock.
Starboard criticized Autodesk in private conversations with the company for not disclosing the investigation and other material updates until after the company’s window for shareholders to nominate director candidates closed in late March, according to the report.
It is considering taking legal action to ask for Autodesk’s director nomination window to be reopened and for the design-software maker’s annual shareholder meeting, currently set for July 16, to be delayed, the report added.
Autodesk and Starboard did not immediately respond to Reuters’ requests for comment.
Autodesk provides 3D design and engineering solutions for several sectors including construction, manufacturing and media. Its portfolio of products include Revit and Fusion 360 software.
(Reporting by Devika Nair in Bengaluru; Editing by Sherry Jacob-Phillips and Rashmi Aich)
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