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Activist Holdings

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Andrew R. Michaud

• September 01, 2023

Sleep Number (SNBR)

Stadium Capital Boosts Stake

Stadium Capital has increased its position in the Sleep Number bed maker to 1,889,461 shares, including 470,000 shares underlying options. The purchases were made from July 28 to Aug. 22 at per share prices ranging from $22.40 to $30.11. In addition, Stadium acquired an additional 155,000 Sleep Number shares on Aug. 18 through call options struck at $25 each. As a result, Stadium now holds an 8.5% interest in Sleep Number.

Concerns and Initiatives

Expressing concerns over Sleep Number's performance, Stadium Capital believes that board representation is necessary to drive improvements in the company's governance, capital allocation, and operations. To address these concerns, Stadium has been engaging in discussions with Sleep Number regarding the composition of the board and opportunities to enhance shareholder value.

Disclosure: These disclosures are from 13Ds filed with the Securities and Exchange Commission. 13Ds are filed within 10 days of an entity's attaining more than 5% in any class of a company's securities. Subsequent changes in holdings or intentions must be reported in amended filings. This material is from Aug. 24 to Aug. 30, 2023.

Increases in Holdings

SciPlay (SCPL)

Gamco Investors (GBL) has increased its interest in the mobile-gaming company to 1,204,292 shares, including 4,000 shares owned by founder Mario Gabelli. Gamco purchased 665,648 SciPlay shares from July 19 to Aug. 24 at prices ranging from $19.49 to $22.73 each. With this increase, Gamco now holds 5.7% of SciPlay's stock.

On Aug. 8, SciPlay accepted Light & Wonder's (LNW) offer to acquire the remaining 17% interest in SciPlay that it doesn't own for $22.95 per share in cash. The deal is expected to close during the fourth quarter of 2023.

Decreases in Holdings

Newell Brands (NWL)

Icahn Capital has reduced its interest in the consumer-products company, home to brands like Rubbermaid, Mr. Coffee, and Coleman, among others, to 20,412,865 shares. From Aug. 14 through Aug. 30, Icahn Capital sold 5,024,260 Newell shares at prices ranging from $10.21 to $10.58 each. They did not provide a reason for the sales. Despite the decrease, Icahn Capital still holds 4.93% of Newell's outstanding stock, which is below the 5% threshold that would require the disclosure of any future Newell stock sales.

Donnelley Financial Solutions (DFIN)

Simcoe Capital has reduced its holding in the compliance-reporting services company to 3,084,560 shares. This figure includes 36,088 shares held by Simcoe founder Jeffrey Jacobowitz, along with an additional 10,214 underlying restricted stock units. From Aug. 10 through Aug. 28, Simcoe sold 395,535 Donnelley shares at prices ranging from $46.50 to $49.28 apiece. Simcoe's current stake in Donnelley is 10.5% of the outstanding stock.

Alkermes (ALKS)

Sarissa Capital Reduces Stake

Sarissa Capital significantly decreased its stake in the biopharmaceutical company, Alkermes (ALKS), to 8,323,400 shares. Over the period from July 27 to Aug. 24, Sarissa Capital sold 5,716,600 Alkermes shares at a price range of $27.52 to $30.27 per share. This reduction in holdings now places Sarissa Capital just below the 5% ownership threshold, which necessitates further disclosure of any future stock sales by the company.