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Investing.com -- First Interstate BancSystem (NASDAQ:FIBK) stock rose 4% after Bloomberg reported that activist investor HoldCo Asset Management has built a significant position in the regional lender and is pushing for strategic changes.
According to the report, HoldCo has accumulated approximately $129 million worth of First Interstate’s common stock since March, representing about 3.8% of the Montana-based bank’s outstanding voting shares. The activist investor is pressuring the bank’s management to avoid further acquisitions and instead expand its share repurchase program beyond current plans.
The Bloomberg report indicates that HoldCo has presented management with an ultimatum: either follow its recommendations for capital allocation or face a potential push for the sale of the company. The activist’s demands were outlined in a presentation reviewed by Bloomberg News.
First Interstate BancSystem, headquartered in Billings, Montana, is now facing increased scrutiny from the activist shareholder as regional banks continue to navigate a challenging operating environment.
The stock’s positive movement suggests investors may be responding favorably to the possibility of increased share buybacks or other shareholder-friendly actions that could result from the activist pressure.
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