Walgreen adds activist hedge fund founder to board

Staff Writer
Columbus CEO

Walgreens is naming Jana Partners founder Barry Rosenstein to its board and the activist investor will get a say in choosing at least one additional director.

Walgreen Co. is under pressure after lowering its earnings forecast as it wraps up its acquisition of the health and beauty retailer Alliance Boots, which runs the United Kingdom's largest drugstore chain.

Walgreen said Monday that Jana Partners will recommend an additional independent director. If another board vacancy opens and Walgreen decides to fill it, then Jana and the nation's largest drugstore chain must agree on the replacement.

Jana Funds holds about a 1.3 percent stake in Walgreen, or about 12.5 million shares, counting call options.