January 20, 2015 / 11:55 PM / 5 years ago

Starboard urges HR services provider Insperity to explore sale

Jan 20 (Reuters) - Activist investor Starboard Value LP urged human resource services provider Insperity Inc to explore a potential sale, calling the company deeply undervalued.

Starboard, which along with its affiliates holds about a 13.2 percent stake in Insperity, also suggested ways for management to improve execution, cut operating expenses and improve capital allocation.

Insperity can boost operating margins by cutting corporate overheads - including selling its two corporate jets - and shifting away from TV advertising and other sports-related marketing, Starboard said.

Starboard also suggested that Houston, Texas-based Insperity buy back shares.

Stadium Capital Management, which had about a 9 percent stake in Insperity in April, said last year that the company was “substantially undervalued”.

Separately, Starboard also called for office-supply chains Staples Inc and Office Depot Inc to merge on Tuesday, saying a combined company would lead to greater savings.

Earlier this month, the investor also reiterated that Yahoo Inc should consider a merger with AOL Inc.

Insperity, whose shares closed at $36.34 on the New York Stock Exchange on Tuesday, has a market cap of about $920.6 million, according to Thomson Reuters data. (Reporting by Natalie Grover in Bengaluru; Editing by Simon Jennings)

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