NEW YORK -- A significant investor today urged Marathon Petroleum to consider a strategic review of its business and consider spinning off the Speedway convenience-store chain or break the company into three businesses focusing on retailing, refining and midstream operations.
"After extensive study and analysis ... we believe Marathon is severely undervalued and that there are readily available steps by which the board can unlock $14 billion—$19 billion in value for shareholders," Quentin Koffey, portfolio manager for Elliott Management Corp., New York, wrote in a letter to Marathon president and CEO Gary Heminger and the company's board of directors.
Marathon Petroleum is the owner of Speedway LLC, Enon, Ohio, one of the largest c-store chains in the United States with more than 2,700 locations.
Elliott Associates L.P. and Elliott International L.P. collectively owns approximately 4% of the common stock and equivalents of Marathon Petroleum Corp., making it one of the company's largest shareholders.
Marathon has not yet responded to Elliott Management's letter and accompanying presentation. Watch CSP Daily News for details.