Spectra Energy Activist Shareholder Sandell Urges More Steps

Spectra Energy Corp., the U.S. pipeline owner that yesterday promised to sell U.S. assets to a partnership it controls, is under pressure to do more after activist investor Sandell Asset Management Corp. said it amassed a stake, according to documents obtained by Bloomberg News.

The company should also explore strategic alternatives for Westcoast Energy Inc. and DCP Midstream LLC, including potential initial public offerings, and cut operating costs to increase returns for shareholders, Sandell Asset said in an e-mailed presentation to Spectra last month. Taking all the recommended steps may increase Spectra’s share price to between $41 to $48, according to the presentation.