(Adds Depomed response; updates shares)
May 26 (Reuters) - Activist investor Starboard Value LP on Thursday formally called for a special meeting of Depomed Inc shareholders as it looks to replace the drugmaker’ s board.
Starboard, which has a 9.9 percent stake in Depomed, criticized the drugmaker’s board last month over corporate governance deficiencies and urged it to explore a sale.
The hedge fund had also said Depomed had taken a “series of shareholder-unfriendly steps,” referring to the company’s decision to reject takeover offers from Horizon Pharma Plc last year.
The company, in response, had given Starboard 30 days to formally request a meeting, to be held within 35-60 days after the submission of the request.
Starboard said on Thursday it had selected a group of six nominees, including Jeffrey Smith, the hedge fund’s CEO, and Peter Lankau, a former CEO of Endo International Plc, for Depomed’s board.
Depomed said late on Thursday it would consider Starboard’s new requests in due course.
The company also said it had amended its rights plan four weeks ago to allow Starboard to call for a special meeting following the hedge fund’s first request.
Depomed’s shares were down about 1 percent at $19.78 in midday trading.
Up to Wednesday’s close, the shares had risen 39 percent since Starboard disclosed its stake in the company in April. (Reporting by Amrutha Penumudi in Bengaluru; Editing by Anil D‘Silva and Sriraj Kalluvila)