Investor Surge as Starboard Acquires Stake in Fluor Corp

Fluor Corp shares rose after Starboard Value acquired a 5% stake. Starboard aims to unlock value from Fluor's significant holding in NuScale Power. While Fluor's core business struggles, NuScale thrives with high demand for clean energy. Starboard sees strategic opportunities in both sectors.

Shares of Fluor Corp saw a notable increase of 2.7% when activist investor Starboard Value announced a nearly 5% stake acquisition. The move is intended to unlock potential value from Fluor's 40% stake in NuScale Power, according to informed sources. Starboard's founder, Jeff Smith, is set to highlight this investment strategy at the 13D Monitor Active-Passive Investment Summit in New York, discussing similar plans for TripAdvisor as well.

NuScale Power's shares, on the other hand, experienced a 7% drop during early trading. Citing Starboard's involvement, Citigroup analysts believe there is room for Fluor's shares to grow, emphasizing the value in the NuScale holdings and potential improvements in core operations.

Despite their recent struggles, where Fluor's second-quarter revenues declined 6% to $4 billion, Starboard sees strategic potential in their core infrastructure and energy projects. NuScale's shares, meanwhile, have surged over 145% this year due to increasing demand for clean energy. Starboard is pushing for unlocking value in both sectors, positioning Fluor to capitalize on infrastructure policies under the Trump administration.

(With inputs from agencies.)