Elliott Nominates 5 to Hess Board
Elliott Management said it will nominate five executives to Hess Corp.’s (NYSE:HES) board, as the firm looks for Hess to divest some segments.
The announcement came one day after the energy company announced it had received a notice from Elliott regarding board nominations and a pending $800 million share purchase.
Elliott said it sent a letter to Hess shareholders asking them to elect Rodney F. Chase, Harvey Golub, Karl F. Kurz, David McManus and Marshall D. Smith, all current or former high-level executives.
The investment firm, which already holds a 4% stake in Hess, also named William Berry and Jonathan R. Macey as alternate board nominees.
The statement released Tuesday included Elliott’s lengthy letter to shareholders, criticizing Hess for its “underperformance” and “lack of focus” and calling the company a “scattered organization.”
On Monday, Hess revealed plans to exit the refining business and sell its East Coast terminal network. Elliott is suggesting that Hess also sell its retail operation and spin off its assets in the Bakken Shale region of North Dakota.
“Hess's dreadful long-term performance speaks for itself,” Elliott said in its letter. “Past words have translated into inaction or irrelevant actions--which is why new directors are needed for real change.”
The letter continued: “In our view, the breadth of the company's operations makes it difficult to manage… Yet, buried within the company are highly valuable, high-potential assets.”
Shares of Hess continued to soar Tuesday, climbing $7, or 11%, to $69.50.