EPAM Systems IncEPAM
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Activist investor demands buybacks and sale, boosting shares.
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EPAM Systems IncEPAM Systems rises as Engine Capital pushes for buybacks and sale
Management
EPAM Systems shares rose 3.4% after activist investor Engine Capital, holding a 1.5% stake, urged the company to repurchase shares and consider a sale. In a letter to the board, Engine demanded an immediate $750 million accelerated share repurchase program funded by existing cash, warning that if the board lacks confidence in the business, it should initiate a strategic review including a sale. Engine's managing member Arnaud Ajdler argued that aggressive buybacks would support multiple expansion, while a sale would minimize execution risk. EPAM did not immediately respond to requests for comment, and the news was earlier reported by the Financial Times. Shares have plunged 44% this year, with short interest at 16%.
EPAM Systems IncActivist investor demands buybacks and sale, boosting shares.