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Report: Activist investor urges Shire to divest assets amid weak stock price

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Report: Activist investor urges Shire to divest assets amid weak stock price

Activist investor Sachem Head Capital Management is calling on Shire plc to divest its assets through a sale or spinoff, Sky News reported, citing sources familiar with the matter.

The U.S.-based hedge fund's demand was attributed to the pharmaceutical company's poor stock price performance following its $32 billion acquisition of Baxalta, Sky News said.

According to the sources, Sachem Head Capital already discussed the matter with the company's directors but has not formally sent a letter to the board yet.

Shire stated during its second-quarter earnings release that it is considering a spinoff of its neuroscience business as part of a strategic review, which is expected to be complete by the end of 2017.