Activist investor Elliott Management demands the break-up of Scottish vitality large SSE
Scottish vitality provider SSE has come below strain to interrupt up its business from activist investor Elliott Management.
The hedge fund has taken a stake in the Perth agency and is leaning on administration to separate its renewable vitality arm from its electrical energy business.
The intervention makes SSE the second FTSE 100 agency in Elliott’s crosshairs, because it targets pharma large Glaxosmithkline and its boss Emma Walmsley.
Pressure: Elliott Management has taken a stake in vitality large SSE and is leaning on administration to separate its renewable vitality arm from its electrical energy business
Elliott has been the driving pressure behind a number of shake-ups at blue-chip corporations and can be calling for change at medication large GSK.
In 2019, the fund was a key voice in a profitable marketing campaign for Premier Inn proprietor Whitbread to separate off cafe chain Costa Coffee, which was offered to Coca-Cola for £3.9billion.
The fund additionally tussled with mining large BHP in 2017, pressuring it to demerge its US petroleum belongings and scrap its twin itemizing in London and Australia.
It is now transferring its foremost itemizing to Sydney.
Breaking up SSE is true out of the fund’s playbook, with Elliott having pushed Portugal’s EDP-Energias de Portugal to promote a part of its electrical energy distribution business and put proceeds into renewables.
SSE has reorganised its business lately to deal with inexperienced vitality, with the company planning to treble its renewable output by 2030.
The group additionally offered its 33 per cent stake in fuel agency SGN for £203million final month to fund its development plans.