A big investor in the energy company Hess Corporation said on Wednesday that it supported the changes called for by the hedge fund Elliott Management.
Relational Investors, the activist investment firm run by Ralph V. Whitworth, said in a letter to John Hess, the chief executive and chairman of Hess, that “Elliott’s suggestions for unlocking value are similar to our recommendations, including a significant change in the board’s composition.†Relational says it has 9.2 million shares of Hess, which would make of its 10 biggest shareholders.
On Tuesday, Elliott, which is led by Paul Singer, presented five possible candidates for the Hess board and called on the company to make a number of major strategic moves, including selling off some parts of the business and spinning off its Bakken shale assets in North Dakota.
Shares of Hess, which surged 9 percent on Tuesday, slippedback 0.34 percent on Wednesday, to $67.88.
In the letter, Relational wrote:
We recognize the natural tendency is to be defensive and cautious. This is the time, however, for the board to be assertive, take control and promptly negotiate a resolution.
“We would be disappointed if the board adopted a defensive posture and forced a proxy contest,†the letter added.
