Pandora (P) on Thursday postponed the deadline for dissident director nominations, suggesting that Carl Icahn protege Keith Meister continues to be seriously considering a proxy contest to push for a sale of the web-radio streaming company.
According to a securities filing, Pandora said it was postponing the deadline for nominating directors for its 2017 annual meeting until May 8. The deadline had previously been Friday, April 28. The deadline has been pushed back over the past few weeks and had initially been set for March 3.
The postponements come after Meister launched an activist campaign at Pandora in May, urging the web-radio company to hire an investment bank and explore a sale because he believes there is "likely to be significant" strategic interest in it. "We believe Pandora can become an even more differentiated product and a more valuable business as part of a larger enterprise," Meister said in a letter he sent to Pandora's board May 16.
Corvex Management, the hedge fund Meister founded in 2010, reported owning a 10% stake, which included common shares and derivatives. Meister touted Pandora, noting it has a "great product."
Meister's background working for corporate raider turned activist Carl Icahn, and his own track record at Corvex all suggest a contest is a serious possibility. According to FactSet Research Systems Inc., Meister has launched 13 activist campaigns and four proxy fights before Pandora as part of his effort to drive change at targeted companies.
Since Pandora has a staggered board, only two directors are up for election in 2017. As a result, Corvex wouldn't be able to take control of the board with a director election. Nevertheless, one of the two board seats up for election in 2017 is Pandora CEO Tim Westergren's position.