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Dye & Durham Battles Activist Investor and Competition Bureau
Dye & Durham faces a Competition Bureau investigation and an activist investor challenge, leading to leadership changes and uncertainty.
English
Canada
InvestigationInternational TradeCompetitionCorporate GovernanceLegalActivist Investor
Dye & Durham Ltd.Competition BureauEngine Capital LpBennett Jones
Matt ProudEmrys DavisKatherine RydelMatthew BoswellArnaud Ajdler
- What is the overall impact of these events on Dye & Durham?
- The Competition Bureau's investigation into D&D's alleged anti-competitive practices, coupled with the activist investor challenge, has created significant turmoil and uncertainty for the company, leading to stock price volatility and a strategic review.
- What is Engine Capital LP's objective regarding Dye & Durham?
- Engine Capital LP, an activist hedge fund, is challenging D&D's board and management, aiming to replace nearly all board members. They cite mismanagement, a broken corporate culture, and the need for operational excellence.
- What is the Competition Bureau investigating Dye & Durham for?
- Dye & Durham Ltd. (D&D) is under investigation by the Competition Bureau for alleged anti-competitive practices, including restricting interoperability with rival software vendors. This has led to higher prices and limited choices for legal professionals.
- What leadership changes have occurred at Dye & Durham recently?
- D&D's CEO, Matt Proud, and other senior executives have left the company since Spring 2022. The company has attempted to use the Competition Bureau investigation to delay leadership changes, fearing the loss of institutional knowledge.
- What attempts did Dye & Durham make to influence the Competition Bureau's investigation?
- D&D's attempts to use the Competition Bureau investigation to prevent board and management changes failed. The court order did not include a provision maintaining management, leaving D&D to fight the investigation and shareholder challenge simultaneously.