Activist investor Starboard Value has urged construction materials company Knife River to explore a sale. The hedge fund disclosed its position in the company this week. Starboard believes a sale could unlock significant value for shareholders.
Knife River’s stock fell more than 7% on Wednesday. The drop followed the company’s warning of continued headwinds. Management cited soft demand and rising costs in its latest outlook.
Starboard is known for pushing for operational changes and strategic alternatives. The fund often targets underperforming companies. It has a history of successful campaigns in the industrial sector.
Knife River supplies aggregates and ready-mixed concrete. The company operates across the United States. Its shares have struggled amid a slowdown in construction activity.
A sale could attract interest from larger building materials firms. Strategic buyers might see synergies with existing operations. Private equity could also consider a take-private deal.
The company has not publicly responded to Starboard’s request. It is unclear whether the board will engage with the activist. Knife River may choose to defend its standalone plan.
Analysts note that the construction sector faces pressure from high interest rates. Infrastructure spending has provided some support. But residential and commercial projects remain weak.
Starboard’s involvement often leads to board seats or strategic reviews. The outcome for Knife River remains uncertain. Investors will watch for any formal response from the company.
