In a bid to appease Elliott Management, Hess Corp has offered the maverick investment fund two seats on the board. The hedge fund firm outrightly rejected the offer, calling it a 'PR stunt.'
The company is seeking to prevent an embarassing defeat to the activist investor at its shareholders meeting on Thursday. Elliot owns 4.5% stake in Hess is recommending a slate of five directors against the nominees of the company.
Both company and investment furm have been lobbying shareholders to gain their vote for their board slates. Hess even went to the extent of removing chief executive John Hess as chairman in a bid to show improvements in the corporate governance in the company.
Hess, in a statement said that it would add two of the nominees of Elliot, chosen in consultation with shareholders if all of the Hess nominees are elected.
In response, Elliot issued a statement saying, "Without ever talking with Elliot and seeing the writing on the wall, Hess engaged in a PR stunt and proposed accepting only two employees."
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