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Upate 11:25am on Feb. 23: Adds Criteo comment.
French ad tech firm Criteo (NASDAQ:CRTO) rose 4% after European activist fund Petrus Advisers urged the company to begin a review of strategic alternatives and for a revamp of its board.
Petrus Advisers, which has a 5.5% stake in Criteo (CRTO) and is among the company’s top 10 holders, also wants the firm to accelerate its existing share buyback plan by means of a self-tender for up to $150 million, according to a letter Petrus wrote to Criteo’s board that was viewed by Seeking Alpha.
Petrus wants Criteo (CRTO) to start a strategic review no later than Q4 and prepare an investor day ASAP to explain the Retail Media strategy and a new mid-term plan.
Criteo (CRTO) responed to the Petrus letter on Friday in a statement.
“While we do not comment on discussions with specific shareholders, it is important to note that members of Criteo’s management team and Board have held a number of discussions with Petrus Advisers over the past three years,” Criteo said in the statement. “We are carefully reviewing their letter and hope to continue to engage constructively with them.”
“Criteo must not remain ‘Lost in transition’ for all times,” Petrus Managing Partner Klaus Umek and Partner Till Hufnagel wrote in the letter. “Standing by and watching the stock fluctuate like a branch in the waves of the ocean does not deliver any acceptable reward for being invested in Criteo.”
The Petrus letter comes after Petrus Advisers unveiled a more than 5% stake in Criteo in early December, according to a 13G filing.
The activist stake comes as Criteo (CRTO) has been speculated as a takeover target for several years, and Reuters reported last February that the ad tech firm had hired banker Evercore to explore a sale.
In 2021 Bloomberg reported that Criteo (CRTO) received takeover interest and it was reported in 2017 that giant WPP (WPP) was close to buying the adtech company.
In November a DA Davidson analyst wrote that Criteo (CRTO) could be an attractive acquisition target with upside of as much as 40% in a potential takeover at a price of $36-$46 a share.
Criteo (CRTO) is set to represent at the Keybanc Emerging Technology Summit on March 6.
