Activist investor Ancora Holdings has urged H.B. Fuller to drop its proposed acquisition of UK-based Advanced Medical Solutions Group, arguing the deal is too risky and could undermine shareholder value, according to a report by Bloomberg

In a letter sent to the adhesives maker’s board, Ancora — which holds a stake of more than 2% in H.B. Fuller — called the potential takeover a “quasi-transformational international acquisition” that is “completely out of management’s depth.”

The activist instead wants H.B. Fuller to explore broader strategic alternatives, including a potential sale of the company or certain assets.

The dispute follows reports that H.B. Fuller submitted a proposal worth more than £600 million for AMS, a UK medical-products company focused on tissue-healing technologies. The deal would mark a further push by the US chemicals group into healthcare.

Ancora also accused management of reversing prior commitments to avoid major M&A activity, claiming shareholders had been “completely misled.”

H.B. Fuller defended its acquisition strategy, saying it has successfully repositioned the business toward higher-growth specialty adhesives through a series of acquisitions since 2023.

The company added that discussions with AMS remain ongoing and no binding offer has been agreed. Ancora warned it could launch a proxy fight at next year’s annual meeting if management proceeds with the transaction.

The activist firm has built a reputation for aggressive shareholder campaigns in recent years, including interventions at Americold Realty Trust and Warner Bros. Discovery.