Jana Takes Stake in Cooper Companies; Shares Jump

Activist investor Jana Partners has built a stake in Cooper Companies and plans to press for strategic alternatives and improved capital allocation to boost shareholder returns, according to people familiar with the matter. Jana may push Cooper to consider combining its CooperVision contact-lens unit with rival Bausch + Lomb; Bausch + Lomb CEO Brent Saunders said such a combination could strengthen competition and create a more scaled company. News of Jana’s stake lifted Cooper shares about 6.3% in premarket trading to $76.50, putting the stock on track for its highest level since July 10. Cooper recently cut its annual revenue forecast amid softer demand, and CooperVision’s quarterly sales of $718.4 million missed estimates, reinforcing Jana’s view that the company’s strategy has generated limited shareholder value. Representatives for Jana, Cooper and Bausch + Lomb did not immediately respond to requests for comment, and Reuters said it could not immediately verify the Wall Street Journal report.