Starboard Discloses 6.8% Stake In Depomed; Intends To Nominate Its Own Directors

(RTTNews) - Shares of Depomed Inc. (DEPO) gained almost 9 percent in extended trades after Activist investor Starboard Value LP disclosed a 6.8 percent stake in the the company.

Starboard also said in a regulatory filing that it intends to nominate a slate of directors to the drugmaker's board, due to "concerns regarding serious corporate governance deficiencies, questionable capital allocation decisions, and egregious actions" by Depomed's current board of directors.

DEPO closed Thursday's trading at $15.00, up $0.17 or 1.15 percent. In the after-hours trade, the stock further gained $1.40 or 9.33 percent.