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Activist hedge fund Elliott Management is pushing for large modifications at
professing that the Canadian oil producer suffers from an “overly bureaucratic company tradition.”
In a letter to the board of Suncor (ticker: SU) Thursday, Elliott disclosed a 3.4% stake in the business and referred to as on it to increase five new independent administrators to aid in a overview of the company’s management structure.
The $51.5 billion hedge fund also would like to see Suncor “overhaul” its operational and basic safety society, noting that the corporation has shed 12 staff members owing to accidents in excess of the previous 8 yrs.
On the economical entrance, Elliott notes that Suncor’s returns have lagged powering peers’ by 91% above the past three several years, and contends that the enterprise has gone from an sector leader to a “show me” tale.
A person way for Suncor to unlock value would be for it to offer noncore belongings, Elliott advised, these kinds of as retail operations, mirroring a suggestion the activist hedge fund produced at
(MPC) a few a long time back.
Suncor shareholders seemed to value Elliott’s letter, as the shares soared 12% on Thursday.
Elliott did not post board candidates in time for the once-a-year meeting on May possibly 10, but it is probable that shareholders could connect with a particular assembly at a later on date.
Suncor didn’t respond to a request for comment, but, in a statement Thursday, acknowledged receipt of Elliott’s letter. Suncor mentioned it “appreciates the views of its shareholders and will get the time to very carefully evaluate the tips and resources furnished.”
Compose to Carleton English at [email protected]