Finace And Stock

Third Point Doesn’t Have the Answer for Shell

Third Point is right that Royal Dutch Shell is undervalued, but splitting up the company isn’t a great solution.

The activist investor launched a campaign to break up the European energy giant into lower-carbon and legacy businesses on Wednesday. It believes a split would add value by creating simpler investment propositions and more focused businesses. Shell rejected the plan when it reported third-quarter results on Thursday, arguing that its businesses can do more together, even if a breakup might provide a short-term pop. It is a classic but fair defense.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Adblock Detected

Please Disable the Adblocker