Paul Singer, founding father of Elliott Management, talking at Delivering Alpha in New York on Sept. 13, 2016.
David A. Grogan | CNBC
Crown Castle introduced Thursday that CEO Jay Brown is retiring, the identical day activist fund Elliott Management sent a letter calling for a brand new chief government as a part of a campaign for “enhanced governance and fiber-strategy enhancements” on the cell tower firm.
Brown will likely be changed by Anthony Melone, a Crown Castle board member, on an interim foundation, the corporate said in a release. The board is conducting a seek for a everlasting successor.
Elliott launched its marketing campaign in late November, pushing for “complete management change” to tackle “long-term underperformance.” Shares of Crown Castle, an actual property funding belief, are down 13% this 12 months, whereas the iShares Global REIT ETF is up nearly 1%.
Elliott beforehand focused Crown Castle in 2020, however stated in a launch detailing the most recent marketing campaign that the corporate “disregarded” the agency’s enter and pursued a “value-destructive technique.”
In addition to a shakeup within the C-suite, Elliott can be in search of to implement bylaw modifications and a overview of Crown Castle’s fiber enterprise, up to and together with a sale.
Crown Castle describes itself as one of many largest communications infrastructure suppliers within the nation. The firm controls greater than 40,000 cell towers and rooftop installations. Its inventory is down greater than 40% from its 2021 excessive.
Elliott controls a $2 billion stake in Crown Castle. The activist fund based by Paul Singer has pursued prior campaigns at firms together with Twitter and Salesforce. This 12 months, Elliott built a $1 billion stake in Phillips 66, and is in search of up to two board seats on the crude refining firm.
A spokesperson for Elliott did not instantly reply to CNBC’s request for remark.
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