The U.S.-listed shares of Canada-based Suncor Energy Inc. (NYS:SU) ran up 5.9% toward a 3 1/2-year high after activist investor Elliott Management L.P. urged the oil and gas company to enhance its board and explore opportunities to unlock the value of its assets. In a letter to Suncor's board, Elliott said the company should add five new independent directors, conduct an objective review of its executive leadership, overhaul the operational and safety culture, increase capital returns and explore value opportunities, including a strategic review of retail. Elliott, which owns about 3.4% stake in Suncor, said it believes its plan can unlock more than $30 billion in value for shareholders, representing a potential increase of 50% or more from current values. The stock has soared 52.4% over the past 12 months through Wednesday, while the SPDR Energy Select Sector ETF (PSE:XLE) has run up 49.4% and the S&P 500 (S&P:SPX) was little changed.
April 28, 2022, 9:17 a.m. EDT