11:06 AM EDT, 07/05/2024 (MT Newswires) -- Enhabit's ( EHAB ) board faces a proxy fight from shareholder AREX Capital Management, which said Friday in a letter to investors that the home health-care provider's strategies "are not working."

"Enhabit's ( EHAB ) leadership continues to find new ways to disappoint," said AREX Capital, which holds 4.9% of the health company's stock.

AREX encouraged shareholders to back its seven board nominees at the 2024 annual meeting to enhance Enhabit's ( EHAB ) operational performance and maximize shareholder value. The meeting is scheduled for July 25.

Enhabit ( EHAB ) didn't immediately respond to MT Newswires' request for comment.

In a June 24 letter to shareholders, Enhabit ( EHAB ) called for the election of its slate of board candidates, which includes nominations for seven new independent directors.

"AREX is pursuing its contest at exactly the wrong time and with the wrong candidates, and it threatens the recent stabilization of the business," Enhabit ( EHAB ) said in the letter.

Shares of Enhabit ( EHAB ) fell 1.4% in recent Friday trading.

Price: 8.64, Change: -0.12, Percent Change: -1.37