The activist investor said that Fluor is being undervalued in the market due to its stake in NuScale.
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Activist investor Starboard Value has taken a significant stake in Irving-based engineering giant Fluor Corp. and is calling on the company to make changes to its business model.
Starboard on Oct. 21 posted online a 35-page presentation outlining its plan for Fluor. It said, in part, that Fluor could “unlock significant value for shareholders” by separating itself from its stake in NuScale. Starboard suggested two options for monetizing Fluor’s stake in NuScale: a tax-free spin-off or a taxable separation through open-market sales, exchange offers or a mandatory exchangeable bond.
Fluor, which ranks as the 15th-largest public company in North Texas by annual revenue and is No. 257 on the Fortune 500, advises companies on a wide variety of construction and engineering projects, from building natural gas export plans to decontaminating and decommissioning older energy facilities.
Fluor said in a statement that it plans to continue to work with Starboard and is focused on long-term shareholder value. A company spokesperson noted that Fluor “maintains an active dialogue with our shareholders.”