Wednesday, May 18

Activist Investor Dan Loeb Increases Shell Stake, Reuters Reports


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(Bloomberg) — Dan Loeb’s Third Point LLC has increased its $750 million stake in the energy giant Shell Plc as the investor seeks to pressure the company to split up its businesses, Reuters reported.

Loeb has held discussions with Shell’s management, board members and other shareholders, according to a letter sent to Third Point investors and seen by Reuters.

The letter described the company’s stock price as cheap but said there could be gains ahead with “proper management,” according to Reuters.

Loeb last year called for Shell to break off its liquefied natural gas, renewables and marketing businesses into a standalone entity. That would separate out the carbon-intensive legacy energy business, which would include upstream, refining and chemicals.

The letter identified Europe’s greater need for energy security as one of the fallouts from Russia’s war in Ukraine, saying this underscored the value of Shell’s LNG business.

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