Activist fund Converium urges UK vet group CVS to initiate stock buyback

May 13 (Reuters) - Activist hedge fund Converium Capital on Wednesday called on British veterinary group CVS CVSG.L to improve performance and initiate a 100 million pounds ($135 million) buyback, ramping up pressure after private talks failed to yield action.

Here are some details:

• In a letter to CVS Group, Converium highlighted its undervaluation and said that no meaningful action is being taken despite engagement.

• The hedge fund holds about 2% stake in CVS, according to LSEG data.

• "Acting decisively would re-engage investors who have grown skeptical of the Board’s stewardship of shareholder capital," the Montreal-based fund said.

• In a statement, CVS said it continues to engage with all its shareholders.

• "The board is considering this feedback in the context of its existing capital allocation priorities for the business including investing for organic growth, executing against the company’s acquisition pipeline and returning excess capital where appropriate,” the company said.

• Converium has warned that it could seek board representation if CVS Group fails to act on its demands, the Financial Times reported earlier on Wednesday.

• Converium's push comes months after Britain's Competition and Markets Authority (CMA) wrapped up a multi-year investigation into the vet industry, imposing reforms such as price transparency measures and caps on prescription fees.

• Up to the last close, CVS' shares were down 18.5% since the CMA's provisional decision following the veterinary services market investigation.

($1 = 0.7388 pounds)