Elliott Urges Duke Energy to Consider Separation Into Three Companies
By Cara Lombardo and Dana Cimilluca
Activist investor Elliott Management Corp. is urging Duke Energy
Corp. to consider separating into three companies, in what would be
a major transformation of one of the nation's biggest
Elliott is seeking board seats at Duke and wants the company to
form a strategic-review committee that would explore the
possibility of a tax-free separation of the utility into three
companies, according to people familiar with the matter. The three
companies would be based on the three major geographies it serves:
the Carolinas, Florida and parts of the Midwest.
The Wall Street Journal previously reported that Elliott had a
stake in Duke and was agitating for change, but the firm's exact
intentions weren't clear, nor was the size of its stake. Elliott
told Duke in a letter that it is one of its 10-largest
shareholders, which would put the stake above $900 million, one of
the people said.
Charlotte, N.C.-based Duke, which has a market value of around
$65 billion, provides electricity to nearly eight million customers
in six states including the Carolinas, some Midwestern states and
Florida. It distributes natural gas to 1.6 million customers in
Ohio, Kentucky, Tennessee and the Carolinas.
Write to Cara Lombardo at firstname.lastname@example.org and Dana
Cimilluca at email@example.com
(END) Dow Jones Newswires
May 17, 2021 11:55 ET (15:55 GMT)
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