Activist Investor to SINA: Sell Weibo or Sell Yourself

American activist investors rarely try to influence Chinese companies, but U.S. hedge fund Aristeia Capital recently went against the grain by challenging SINA (NASDAQ: SINA), one of the oldest internet companies in China. Aristeia owns a 3.5% stake in SINA, making it the company's fourth-largest shareholder.

Aristeia wants SINA to expand its five-member board of directors into seven seats with two of its own nominees. It claims that the current board is too "entrenched", and caused "critical governance failures" which caused the stock to be undervalued.

SINA's mobile news app. Image source: Google Play.

Source: Fool.com