Second U.S. activist investor reveals stake in Suncor
A second major U.s.-based activist investor has disclosed a stake in Canadian energy firm Suncor Energy Inc., which last month became a target of a campaign by Elliott Investment Management.
According to a regulatory filing, Third Point LLC held 3.5 million shares of the Calgary-based energy firm at the end of March, valued at more than US$114 million. The investment is in keeping with others recently taken in the sector, which the firm's chief executive, Daniel Loeb, has said is undervalued and a good hedge against inflation.
Elissa Doyle, chief communications officer and head of ESG engagement at Third Point, declined to answer questions about the fund's intentions for the holding.
The Canadian energy sector is ripe territory for Third Point, which also made investments in Calgary-based Cenovus Energy and Ovintiv Inc. (formerly Encana), according to the filing.
When it comes to energy firms, Loeb has been public about his push to shake up Royal Dutch Shell PLC through a Us$750-million holding, calling on the firm to spin off liquefied natural gas and renewable operations into a separate company, thereby separating them from the energy operations.
Less clear are his intentions with regards to Suncor, which faced harsh criticism from Elliott Investment Management in April. Elliott took a 3.4-per-cent economic stake in Suncor and has demanded five seats on the Suncor board, as well as a strategic review and the sale of assets. Elliott was also critical of the energy firm's safety record.
Suncor was the worst-performing large Canadian oilsands producer in the past year, according to Bloomberg.
Suncor CEO Mark Little said last week that the board and executives will engage in talks with Elliott but that he disagrees with one of its main recommendations.