The Chicago Entrepreneur

: NRG Energy up as Elliott discloses stake, calls for strategic review of Vivint unit

NRG Energy Inc. NRG stock rose 6.5% in premarket trades Monday after Elliott Management disclosed a $1 billion stake in the power company. Elliott Management unveiled a plan to create $5 billion in shareholder value at NRG including a strategic review of its home services unit Vivint, which the firm described as “the single worst deal in the power and utilities sector in the past decade.” Elliott said it now has a 13% ownership position in NRG. Its value creation plan includes the addition of new independent directors at NRG and an effort to “improve operations and reliability” through $500 million of annual cost reductions. It also called on NRG to refocus on its core business. “Elliott has identified five highly credible executives to help guide the necessary operational and strategic changes,” the firm said. “The board should also evaluate the management team’s ability to drive high-performance operations on a sustained basis.”

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Previous post : Mullen Automotive gives update on EV deals, factories
Next post : Heico to buy aircraft aftermarket company Wencor in $2.1 billion deal