Investor floats Bakken spinoff for Hess

Pressure: Investors urge Hess to unlock more shareholder value

Blake Wright

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By Staff & news wires

 29 January 2013 21:22 GMT

Hedge fund Elliott Management has urged Hess to consider a spinoff of the US explorer's position in the prolific Bakken in North Dakota and other US tight-oil plays as a means of unlocking more shareholder value.

"We are convinced that tremendous value is trapped inside the Company as a result of poor oversight by a board of directors lacking both the experience and independence to set a clear, shareholder-focused, value-creating strategy," Elliott wrote in a letter to Hess, according to a Reuters report.

Hess disclosed on Monday that activist investor Elliott, which owns about 4% of Hess, was considering putting up a slate of nominees for the company's board.

The company also announced plans to sell its oil storage terminal network and exit the refining business.

Hess…

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