Elliot Management Urges Hess Spinoff of Bakken Assets, Shares Spike Higher
January 29, 2013 - 10:34am
Elliot Management's Paul Singer urged Hess (NYSE: HES) to conduct a full strategic review of the company, including the possibility of selling the company's Bakken Shale assets.
Singer, the noted activist investor, wrote a letter to shareholders Tuesday urging them to accept five new board members supported by Elliot. Elliott Management owns four percent of Hess's common stock, the largest initial investment in its 35-year history.
On January 25, Elliot gave notice to Hess that it was seeking to purchase approximately $800 million in shares and seek new board members upon completion of the purchase. “Lack of focus is a chronic issue at Hess that remains unchecked by the board,” Elliott said in the letter. “New directors are needed for real change.”
The firm also said that shares could be worth as much as $126 per share if the company could unlock ...
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