PRESS: Third Point builds massive Shell stake, pushes for split

(Alliance News) - Reuters on Wednesday reported that Royal Dutch Shell PLC has come under pressure from an activist shareholder to break itself up.

Reuters, citing a source close to the matter, said activist investor Daniel Loeb's Third Point has built a stake worth nearly USD750 million in Shell - and is pushing for its breakup.

In a letter seen by Reuters, Third Point argued that Shell has "too many competing stakeholders pushing it in too many different directions", resulting in "incoherent" strategies.

Third Point is pushing for Shell's split into multiple standalone businesses, including a legacy business focused on oil and gas and another arm which could deploy "aggressive" investment in renewables and other carbon reduction technologies.

Reuters noted that the Wall Street Journal, which first reported the matter, had put the size of the stake at more than USD500 million.

https://www.reuters.com/business/energy/third-point-takes-big-stake-shell-urges-oil-major-split-into-two-wsj-2021-10-27/

Shell is due to publish third quarter results on Thursday.

By Lucy Heming; lucyheming@alliancenews.com

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