Starboard sets date for special meeting of Depomed shareholders

September 19, 2016 8:24 AM EDT

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(Reuters) - Activist investor Starboard Value LP, which owns 9.8 percent of drugmaker Depomed Inc (NASDAQ: DEPO) and wants to oust the company's board, said on Monday it had won enough support from shareholders to set Nov. 15 as the date for a special meeting.

The hedge fund has criticized Depomed's board over alleged governance deficiencies and urged it to explore a sale.

Starboard has also said Depomed had taken a "series of shareholder-unfriendly steps," referring to its rejection of takeover offers from Horizon Pharma Plc (NASDAQ: HZNP) last year.

Reuters, citing people familiar with the matter, reported earlier this month that Depomed was preparing to put itself up for sale.

However, Starboard said on Monday it was "extremely concerned" that any potential sale process may not be genuine, but a smokescreen to distract from the board changes it wants.

(Reporting by Natalie Grover in Bengaluru; Editing by Ted Kerr)

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