Re: Fluor Corp (FLR) stock +8% in AH
The activist investor Starboard Value has taken an approximately 5% stake in Fluor Corporation (NYSE: FLR), with intentions to push management to enhance shareholder value—specifically by exploring strategic options for its roughly 40% ownership in NuScale Power (NYSE: SMR).?
Key Details from the Press Coverage- Announcement Date: October 20, 2025
- Source: Initially reported by the Wall Street Journal and confirmed by Reuters and Investing.com.?
- Activist Investor: Starboard Value LP, led by Jeff Smith, is known for its active engagement in undervalued companies and is expected to present its case at the 13D Monitor Active-Passive Investor Summit in New York on October 21.?
- Stake Details: Starboard acquired nearly 5% of Fluor’s shares.
- Objective: The firm believes Fluor’s core engineering and construction business is undervalued relative to the market value of its NuScale holdings, which have surged due to investor enthusiasm around nuclear power applications in data centers and AI infrastructure.?
- Proposals: Starboard is urging management to consider strategic alternatives for the NuScale stake, including a partial or full sale, to unlock shareholder value.?
- Market Reaction: Following the news, Fluor’s shares jumped 6.7% in after-hours trading, rising to about $51.12, although the stock remains down approximately 3% year-to-date.?
Context on Fluor and NuScaleFluor has already begun monetizing part of its NuScale investment, having sold 15 million Class?A shares of NuScale earlier in October?2025 for roughly $605?million, retaining a 39% equity stake and planning to use proceeds for a share repurchase program.?
Starboard’s involvement could increase pressure on Fluor to complete an exit or spin off its remaining NuScale holdings, aligning with investor sentiment that the nuclear subsidiary’s valuation may overshadow Fluor’s traditional business lines
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I gave up on this but knew that had a large interest in Nuscale Power Corp (SMR) - seems like the activist saw the same potential value as I did |
