THE HAGUE (dpa-AFX) - Royal Dutch Shell plc(RDS-B, RDSB.L, RDSA.L, RDS-A) confirmed Wednesday that it has received an investor letter from Third Point LLC.
Earlier, there were reports that activist investor Daniel Loeb's investment firm Third Point is urging the oil company to break up into two different companies. Third Point's stake in Shell is reportedly worth over $500 million.
Third Point reportedly said Shell should consider creating a stand-alone company with its legacy oil business and another company that focuses on renewables and green energy.
Meanwhile, Shell said it regularly reviews and evaluates the company's strategy with a focus on generating shareholder value. As part of the ongoing process, Shell welcomes open dialogue with all shareholders, including Third Point.
Shell noted that its Investor Relations team has had preliminary conversations with Third Point and the company will engage with them.
Shell set out its Powering Progress strategy earlier this year and its Energy Transition strategy received 89% support of its shareholders at its Annual General Meeting in May.
The company will release its third quarter results on Thursday October 28th.
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