Elliott calls for Suncor strategic review, board changes

div classBodysc17zpet90 cdBBJodivpReuters – Hedge fund Elliott Management is pushing Canadas Suncor Energy to undertake a strategic review of its business and refresh its board, saying its shares have underperformed despite a surge in crude prices to multiyear highs.p

pIn a letter to the company‘s board on Thursday, the activist investor said Suncor’s shares have remained virtually unchanged since early 2019 and that the oil producer has missed production goals, while being plagued with safety failures. pdivdivdiv classBodysc17zpet90 cdBBJodiv

pElliot, which holds about 3.4 stake in the company, also suggested adding five new independent directors to the board, but has not called for any executive changes yet.p

pA review of shareholder returns and increasing capital returns from 50 to 80 of discretionary cash flow after capex and dividend were among other suggestions made by billionaire Paul Singers hedge fund. p

pSuncor did not immediately respond to Reuters request for comment. p

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pp Reporting by Rithika Krishna in Bengaluru Editing by Anil DSilvap

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