Our Take: Third Point Brings Genie Out of the Bottle

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Hedge fund Third Point’s proposal to split up Royal Dutch Shell is the most ambitious challenge yet by a shareholder attempting to influence the strategy of an oil major. Once unthinkable, the oil industry should now be prepared for an increase in challenges from activist investors who see an opportunity to profit from the energy transition by pushing through different strategies to those being followed by incumbent management teams. Any change — and any share price appreciation — resulting from Third Point’s activism could encourage others to pile in, and potentially accelerate the transformation of the oil and gas industry.

Corporate Strategy , Majors, Equity and Debt Markets
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