Activist hedge fund Engine Capital, which has been agitating for a shakeup at US convenience store and fuel station owner Parkland Corp, is to oppose the re-election of the company’s board members, according to a report by the Globe and Mail.
The report cites a letter sent by the New York-based firm to Parkland on Thursday as revealing that it wants to see the company either broken up or privatised, having had its requests to meet with directors rebuffed.
Engine Capital owns roughly 2 per cent of the shares of Parkland which owns thousands of convenience stores and gasoline stations in Canada, the US and the Caribbean operating under brands like On the Go, Pioneer and Ultramar, as well as frozen food retailer M&M Food Market.Handout
Engine has previously urged Parkland’s board to undertake a strategic review, citing “staggering underperformance” of its shares compared with rivals and has stated that it believes the company would be worth more if it split its retail operations from its fuel production and supply business.
