Deals
D.E. Shaw Is Said to Push Exxon Mobil to Cut Spending, Costs
- Activist investor has increased Exxon stake since September
- New York-based firm outlined concerns in a letter sent Tuesday
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D.E. Shaw & Co. has built a sizable position in Exxon Mobil Corp. and is calling on the company to cut spending to improve performance and maintain its dividend, according to people familiar with the matter.
D.E. Shaw on Tuesday sent a letter to Exxon arguing that changes are needed because the oil major has consistently underperformed rival Chevron Corp., said the people, who asked not to be identified because the details are private. D.E. Shaw believes Exxon is overspending, and that its current path is unsustainable and puts its dividend at risk, they said.