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Investing.com -- Baker Hughes (NASDAQ:BKR) stock rose 2% after activist investor Ananym Capital Management revealed it has built a stake in the energy company and is pushing for a potential sale or spinoff of its oilfield services equipment business.
Ananym sees "substantial share price upside" of 51% from separating the oilfield services equipment (OFSE) unit from Baker Hughes’ other core division, according to a presentation made Tuesday by Charlie Penner, the firm’s head of engagement, at the 13D Monitor Active-Passive Investment Summit in New York.
Penner argued that the OFSE unit has different "natural investors" than Baker Hughes’ industrial and energy technology division, suggesting the two businesses might be more valuable as separate entities. Ananym has already engaged with Baker Hughes management to discuss potential strategies, Penner said.
The activist investor’s involvement comes as energy companies face increasing pressure to maximize shareholder value amid volatile oil prices and the ongoing energy transition.
Penner’s comments were first reported by Bloomberg News.
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