Algonquin Power stock gets a pop after Starboard discloses stake and calls shares 'undervalued'

Shares of Algonquin Power & Utilities Corp. (AQN.T) were up 1.6% in Friday's premarket trading after Starboard Value LP disclosed a 5% stake in the company. Jeffrey Smith's Starboard Value has amassed a position of 34.1 million shares of the energy and water-solutions company, according to a Friday morning filing with the Securities and Exchange Commission. While Starboard disclosed the 5% stake, it also said in the 13-D filing that it has "economic exposure to an aggregate of 51,413,000 shares (representing approximately 7.5% of the outstanding shares) due to certain cash-settled total return swap agreements." Starboard added in the filing that it bought the shares because they "were undervalued and represented an attractive investment opportunity."

-Emily Bary

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

06-30-23 0855ET

Copyright (c) 2023 Dow Jones & Company, Inc.