Could the letter lead to strategic initiatives such as asset sales, spin‑offs, or M&A activity that would unlock shareholder value?

Yes – the letter could act as a catalyst for strategic moves that unlock value.

Engine Capital’s 3 % stake gives it enough clout to push Avantor’s board to address the “valuation gap” the activist points out. In practice, such letters often precede a series of “value‑creation” initiatives: targeted asset‑sale programs, non‑core business spin‑‑offs, or the launch of a merger‑‑and‑‑acquisition process to either divest under‑performing units or acquire complementary assets at attractive multiples. If the board embraces the suggestions, we would likely see a public‑company‑wide “review of strategic options” filing (e.g., a Form 8‑K) within the next 4‑6 weeks, which historically fuels short‑term buying pressure on the stock.

Trading implications – Avantor (AVTR) has been trading in a relatively flat‑to‑slightly‑downward range around $115‑$120, with the 50‑day SMA (≈$118) acting as a soft support. A credible strategic‑review announcement would be a positive catalyst; a breakout above the $120 resistance could trigger a swing‑trade rally toward the $130‑$135 upside (≈ 10‑15 % from current levels), especially if the market perceives a clear path to a higher earnings multiple. Conversely, if the board stalls or rejects the activist’s proposals, the stock may stay range‑bound or even test the $110‑$112 support, exposing the downside risk.

Actionable take‑away: Keep a close eye on upcoming corporate‑governance filings (SEC 8‑K, proxy statements) and any management commentary in earnings calls over the next 2‑3 weeks. If a strategic‑review is announced, consider a long‑position with a stop just below the $118 SMA and a target near $130‑$135. If the board remains silent or the letter is dismissed, a short‑position or defensive hedge around $115 with a stop at $120 may be warranted. The letter therefore has the potential to unlock shareholder value through asset sales, spin‑‑offs, or M&A, and the market will price that probability in the near‑term.