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Third Point takes big stake in Shell, urges breakup

by Mike Robinson

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© Reuters. FILEPHOTO: The Shell logo appears on the fuel pump of a Warsaw station, Poland. June 1, 2017. REUTERS/Kacper Pempel/File Photo

(Reuters) -Activist investor Daniel Loeb’s Third Point (NYSE) purchased a substantial stake in Royal Dutch Shell LON: and demanded that the European oil giant be split up into two companies.

According to the report, Third Point is one of Shell’s largest investors, with a stake worth over $500 million. This makes Third Point an important investor in Shell.

Shell and Third Point have not yet responded to Reuters’s requests for comment.

Shell believes it is time to create two independent companies – one to house its legacy businesses, and another that focuses solely on renewables. This was reported by the WSJ, citing a Wednesday letter from the company’s shareholders.

Shell is expected to release third quarter results on Thursday.

Eni (OTC) and Repsol, smaller Shell competitors, have announced plans to spin-off parts of their renewables businesses in order to finance their shift to lower-carbon products.

 

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