10/27, 6:13 PM (Source: TeleTrader)
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Major investor calls on Shell to split into 2 firms - report

New York-based hedge fund Third Point LLC is calling on Royal Dutch Shell plc to split its business into two separate entities, The Wall Street Journal reported on Wednesday, citing unnamed sources briefed on the issue.

Under the proposal, one firm would deal with Shell's traditional energy businesses with stable cash flow, while the other would focus on renewable energy activities and units where extensive investment is needed. The potential move would serve to attract and retain investors who otherwise would avoid or exit from businesses deemed harmful to the environment.

Third Point's $500 million stake in Shell makes it one of the oil company's biggest investors, according to the report.

Breaking the News / MS