Starboard Value Is Said to Build Stake in Flowserve (1)

Activist investor Starboard Value has built a significant stake in Flowserve Corp. and is speaking to the industrial company about potential changes, according to people familiar with the matter.

Starboard and the company have been discussing ways the manufacturer could expand margins, the people said, asking not to be identified because the matter is private.

The exact size of Starboard’s investment couldn’t be learned.

“We regularly engage with shareholders and prospective investors to hear their views and appreciate their perspectives,” a representative for Flowserve said in a statement. “As a matter of practice, we do not comment on the specifics ...