Elliott Management Corp., owned by billionaire investor Paul Singer, believes Hess Corp. (NYSE: HES) ought to undertake a comprehensive strategic review with a view toward spinning off its Bakken shale assets.
Elliott owns 4 percent of Hess common stock and has encouraged Hess shareholders to vote for the five new board members that it proposed in a recent letter, Bloomberg reports:
“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.”
Hess stated recently that it would be closing down its last remaining refinery and is looking to sell off a fuel storage network.
Earlier this month, Elliott Management notified Hess that it would both buy $800 million in shares and look for new board members to boost the company.
According to Elliott, Hess shares ought to be trading for nearly double their current rate of around $67.88, where shares closed yesterday.
