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Activist Investor Browning West Acquires 43 Stake in Cae Seeks Influence in Ceo Selection

Activist Investor Browning West Acquires 4.3% Stake in CAE, Seeks Influence in CEO Selection

On Friday, Browning West, the Activist investor, said it has built a 4.3% stake in CAE (NYSE: CAE), pushing to have a say in hiring the flight simulator maker’s new top boss.

In November, CAE said its current CEO Marc Parent would leave the Canadian firm after 15 years.

“We urge the Board not to act hastily in its CEO search, but rather to engage with us to collectively recruit the best possible leader,” Browning West said.

The aviation training specialist’s shares have fallen by about 4% in the past five years, underperforming the S&P/TSX Composite Index which has risen roughly 43% in the same period.

Browning said while it “admired CAE’s business and its enviable market position”, the company’s stock has fallen short of expectations.

CAE did not immediately respond to a Reuters request for comment.

The Montreal-based company also reported a lower second-quarter profit, as supply chain challenges continued to affect the firm.

Formed in 2019, Browning West is an investment firm based in Los Angeles, California, and was most recently involved with Canadian apparel maker Gildan Activewear (NYSE: GIL) and bringing its former CEO back.