Hedge Fund Elliott Said to Be Top 10 Investor in Utility PPL

Elliott Investment Management, the investment firm run by billionaire Paul Singer, has built a sizable position in utility owner PPL Corp., according to people familiar with the matter.

(Bloomberg) — Elliott Investment Management, the investment firm run by billionaire Paul Singer, has built a sizable position in utility owner PPL Corp., according to people familiar with the matter.

The stake moves Elliott into PPL’s 10 largest investors, said the people, who asked to not be identified because the matter isn’t public. Talks are cordial and Elliott helped the Allentown, Pennsylvania-based company shape an updated business plan unveiled on Wednesday, the people said.

That plan includes raising capital expenditures, upping the dividend, lowering carbon-dioxide emissions and adding a new board member, Linda Sullivan, according to a statement. One goal is to grow earnings per share by 6% to 8% annually through 2026.

Representatives for Elliott declined to comment. Representatives for PPL didn’t immediately respond to requests for comment.

PPL rose 2.9% to $31.04 at 11:44 a.m. in New York trading Wednesday, giving the company a market value of about $23 billion.

Elliott has a long history in the power sector. It disclosed a position last year in natural gas utility NiSource Inc. and has also invested in SSE Plc, CenterPoint Energy Inc. and Duke Energy Corp.

PPL has utilities in Kentucky, Pennsylvania and Rhode Island serving 3.5 million customers, according to an investor presentation Wednesday.

Analysts at Gordon Haskett Research Advisors wrote that PPL may have been facing an activist investor, citing Elliott as the most likely candidate given its experience in the sector, according to a research note Wednesday.

–With assistance from Will Wade.

(Updates trading in sixth paragraph)

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