CHARLOTTE – Duke Energy, in a statement in response to a letter sent from activist investor Elliott Investment Management to the board of directors of Duke Energy, described the investor’s plans as “the latest attempt to push its short-term agenda at the expense of long-term shareholder value.”
This is the second letter sent to Duke Energy’s board of directors, then shared publicly, by Elliott in recent months.
A May 2021 letter argued that Duke Energy ought to split the company into three regionally focused entities. In today’s statement, Duke Energy called that earlier proposal “illogical, complex” and “financially unsound and ran counter to the strategic direction of the entire industry.”
Duke Energy to reduce office space in Charlotte, faces bid to split the company
In the most recent letter, Elliott called for enhanced board independence, improved operational performance in Florida, increasing focus in Indiana, and the attainment of a premium valuation.
Duke described this as an “attempt to undermine Duke Energy’s leadership team,” and noted that the letter from Elliott “ignores the diverse and experienced professional talent that drives this company and is silent on the significant accomplishments it has achieved.”
Elliott also involved in GSK
Elliott is also pushing new leadership at GSK for changes as well.
GSK is planning to split in two and is under pressure from Elliott. The company plans to spin off its consumer products group; Elliott pushed for the company to sell off the consumer products group, not spin it off.
Elliott’s first comments since it acquired a large stake in the firm earlier cited GSK leadership as having “a poor record of operational execution and value creation, leading to skepticism about the company’s future and an under-appreciation of its true potential,” according to reporting from Bloomberg.
Activist investor ups pressure on GSK’s CEO in battle over drug giant’s spinoff plan
The board of directors for GSK is backing CEO Emma Walmsley.
“The Board strongly believes Emma Walmsley is the right leader of New GSK and fully supports the actions being taken by her and the management team,” the GSK board declared in a letter. “Under Emma’s leadership, the Board fully expects this team to deliver a step-change in performance and long-term shareholder value creation through the separation and in the years beyond.”
GSK has a large presence in North Carolina, including in Research Triangle Park, and a plant in Zebulon where the company manufactures solid-dose products, including tablets and capsules and also does granulation, drying and packaging, and contract manufacturing of antibiotics for other companies, according to the North Carolina Biotechnology Center.
