Jana Partners Is Pushing Vonage to Sell or Break Up

Activist investor Jana Partners has called on Vonage Holdings Inc. to hire advisers to explore strategic alternatives, including a possible sale of all or parts of the telecommunications services company, according to people familiar with the matter. Vonage rose as much as 11% on the news.

The New York-based hedge fund, which owns about 4% of Vonage, has discussed its views with the company and fellow shareholders after a previous review of the company’s consumer business failed to result in a sale, the people said, asking not to be identified because the matter is private.

Jana, which is run by Barry Rosenstein, has conveyed in those discussions that it believes Vonage’s current corporate structure prevents its underlying businesses from achieving their true value, the people said. It has called on the company to launch a review with an eye to improving returns for shareholders, they said.