Drug maker Endo Pharmaceuticals Holdings Inc. said Wednesday its board will nominate William F. Spengler to the board at its annual meeting as part of an agreement with shareholder D.E. Shaw Group.
The investment manager, which owns a 9.8 percent stake in the Chadds Ford, Pa.-based company, has subsequently agreed to vote all of its shares in favor of the election of each of the board's nominees.
The size of the board will increase to eight members, effective June 26.
Spengler, 53, previously served as executive senior vice president and chief financial officer of biopharmaceutical company MGI Pharmaceuticals Inc.
D.E. Shaw has also agreed not to solicit proxies from the company's shareholders for the election of directors or other matters through the 2009 annual meeting.
In February, D.E. Shaw expressed concern with Endo's strategic direction and said the company should immediately retain an investment bank to explore strategic alternatives to increase shareholder value.
The shareholder said it would consider seeking board representation or taking other action if the company did not address its concerns.
Endo Pharmaceuticals shares rose 13 cents to $25.15 in afternoon trading.
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