Sempra CEO says he’s holding ‘constructive’ talks with activists

Bloomberg

Sempra Energy Chief Executive Officer Jeff Martin said he’s holding “constructive” talks with activist investors pressing for the company to shed assets and shake up its board.
But Elliott Management Corp. and investor partner Bluescape Resources have been frustrated by the pace of the discussions and had hoped for a settlement
before Sempra’s second-quarter earnings report, according to people familiar with the matter who asked not to be identified because the talks are private.
“We’re highly engaged in constructive dialogue at the highest levels of each organisation,” Martin said, noting that he and three board members recently flew to New York for meetings with Elliott and Bluescape.
Elliott and Bluescape, which together own a 4.9 percent stake in the San Diego, California-based utility owner, have been pushing for Sempra to streamline its business by selling its Latin American utilities and spinning off a liquefied natural gas business.
Elliott has also called for six new directors on Sempra’s board.
The latest talks have focussed on board representation and the formation, makeup and mandate of a strategic-review committee, the people familiar said.
Elliott has called for a top-to-bottom strategic review to improve the company’s performance, they said.
Sempra “will continue to welcome shareholder input as we evaluate our portfolio and, at the appropriate time and under conducive market conditions, pursue additional opportunities to create long-term value for all shareholders,” Doug Kline, a Sempra spokesman, said.
A representative for Elliott declined to comment.
Sempra has previously said it would sell all of its US wind and solar assets and some natural gas storage facilities — moves that led to $900 million in charges on its second-quarter results.