Activist Investor Boosts Fluor Corp Prospects Amid NuScale Power Stake

Activist investor Starboard Value takes a nearly 5% stake in construction firm Fluor Corp, boosting its shares by 6%. Starboard's move intends to unlock value from Fluor's significant holding in NuScale Power. Analysts expect potential improvements in Fluor's core operations amid rising demand for clean energy solutions.

Fluor Corp experienced a 6% rise in premarket trading shares after Starboard Value, an activist investor, acquired nearly 5% of the company. This strategic move aims to elevate the value of Fluor's substantial 40% holding in NuScale Power, according to sources contacted by Reuters.

NuScale Power shares dropped by 4.7% pre-market. Citigroup analysts believe Starboard's involvement aligns with their prediction of Fluor's potential stock appreciation. They noted that Fluor's NuScale shares still constitute over 60% of its market capitalization with options to divest further.

NuScale's shares have increased by over 145% this year, reflecting a surge in demand for clean energy for AI and defense. Starboard advocates for strategic options to elevate Fluor's undervalued core business amidst favorable infrastructure policies expected under President Trump's administration.

(With inputs from agencies.)