Activist investor Elliott discloses stake in RWE, calls for buyback increase
FRANKFURT (Reuters) – Activist investor Elliott on Monday disclosed a stake of close to 5% in RWE, urging the German utility to significantly increase its 1.5 billion euro ($1.63 billion) share buyback programme.
The comments come after RWE last week cut its investment programme by 10 billion euros, or more than a fifth, by 2030, and also set more ambitious return targets for its projects, a move Elliott said it welcomed.
The investor said in a statement:
These measures represent an important first step towards more disciplined capital allocation.
“However, we share the market’s disappointment with the lack of clarity regarding the company’s commitment to enhance shareholder returns.Given the announced capex reduction and RWE’s persistent undervaluation, we believe there is a compelling opportunity to significantly increase and accelerate the ongoing share buyback programme.”
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Activist investor Elliott discloses stake in RWE, calls for buyback increase, source
