The activist hedge fund Elliott Management is targetting a breakup of SSE PLC (LSE:SSE) after building up a stake in the power company, according to a media report on Tuesday.
The hedge fund, run by billionaire Paul Singer, believes there is value in splitting SSE’s renewable portfolio from its regulated electricity businesses, sources told Bloomberg.
Elliott has been meeting privately with representatives from SSE, as well as some of its major shareholders, the report said.
Elliott Management, which has holdings worth over US$40bn, is renowned for its aggressiveness in forcing changes on its portfolio companies.
Its previous efforts in the London market included a campaign to appoint new directors at GlaxoSmithKline PLC and forcing a vote on whether chief executive Emma Walmsley should keep her job, while in 2018, Elliott pushed Whitbread PLC (LSE:WTB) to sell off its Costa Coffee business.
Other current UK holdings include a 5% stake in Clinigen Group PLC (AIM:CLIN).
SSE shares were up 0.37% at 1,637p in late morning.
READ: Elliott Management, the US activist investor forcing change across the world