Sandell urges Spectra Energy to explore steps to unlock value

Sandell Asset Management's CEO Thomas Sandell sent a letter to Greg Ebel, CEO of Spectra Energy, which stated in part, "As our shareholder group advised you last month and discussed with you again last week, we believe that SE has an intrinsic value of $48 per share, or more than 40% over its current price, which we believe would be realized if you and the Board fully embrace and execute the additional steps we have outlined, transitioning SE into a pure GP HoldCo entity. The remaining steps in our 'Plan to Unlock Shareholder Value' include the following actions: Review strategic alternatives for SE's Canadian operations (Westcoast Energy, Inc./WE) including an IPO of WE...Review strategic alternatives for DCP Midstream LLC (DCP), including a sale/dropdown or IPO...Implement operational cost cuts across SE's entities that will reduce inefficiencies and boost profitability as management teams are more aligned with underlying operating asset performance and their related publicly-traded shares."

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