Bausch Health Cos’ stock soared 11.3% following a dramatic boardroom shakeup, as a major investment firm significantly expanded its stake, becoming the dominant shareholder with a 19.13% holding. The move comes after the firm acquired 34.7 million shares from a departing activist investor group, triggering the automatic termination of a prior board agreement and the resignation of two directors. The new controlling shareholder, already serving as board chairman, expressed strong confidence in the company’s value potential, bolstered by impressive quarterly results. Bausch Health reported adjusted earnings of $0.40 per share, far exceeding analyst estimates of $0.04, while revenue climbed 5% to $2.53 billion. The stock had already surged over 30% last week, reflecting renewed investor optimism.
Long-Term Recovery in Focus
The departing investor group had initially bet on a turnaround but exited after years of lackluster performance. Despite the stock trading below the new majority shareholder’s acquisition price, market sentiment remains positive. The firm highlighted the growth prospects of Bausch Health’s subsidiary as a key driver for future value. With a market capitalization of $2.77 billion, the company still faces challenges, but the massive stake acquisition signals a potential inflection point.
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