Following their initial letter to the Crown Castle (NYSE:CCI) board in late November, activist investor Elliott Investment Management issued a follow-up letter to the board yesterday, emphasizing the need for strategic changes and a review of the fiber business.
The hedge fund points to CCI's underperformance compared to peers and positive feedback from investors and analysts since its initial letter to the board in November.
In response to the pressure, CCI's long-term CEO, Jay Brown, has announced his retirement.
CCI shares added 1.6% in response to this development.
While Elliott acknowledges this as a positive step, they assert that additional significant changes are necessary for Crown Castle to maximize value for shareholders.
“We believe that additional significant changes are needed to ensure that Crown Castle is best positioned to fulfill its potential for shareholders,” it is said in a letter.
“We look forward to continuing our dialogue with the Company’s Board regarding the necessary next steps, including a comprehensive review of the Fiber business, meaningful governance enhancements and a robust and transparent search process for Crown Castle’s next CEO,” Elliott says.