Tags: Hess | Gasoline | Station | spin off

Hess Files for Tax-Free Spinoff of Gasoline-Station Network

Wednesday, 08 Jan 2014 11:05 AM

Oil and gas company Hess Corp. said it filed with regulators to spin off its gas station and convenience store network, the latest business the company is shedding in response to a campaign by activist investor Elliott Management.

Hess said it had received a ruling from the Internal Revenue Service that would allow it to distribute its retail business to shareholders in a tax-free spinoff.

Hess Retail is the largest operator of gas-convenience stores along the U.S. East Coast, the company said in a filing with the Securities and Exchange Commission.

Hess, which has broken up its huge energy business over the last year to focus on U.S. exploration and production, said in March it would exit its retail gasoline business by 2015.

Hess said on Wednesday it would also solicit offers to buy the retail business.

The company has already exited refining, sold its terminal business and divested some overseas oil and gas assets.

Hess settled its months-long battle with Paul Singer's Elliott Management last May, agreeing to appoint three board members nominated by the hedge fund.

Hess operated 1,177 convenience stores and 81 travel plazas as of Sept. 30.

Hess shares were up 0.3 percent at $81.10 in early trading on the New York Stock Exchange on Wednesday.

© 2017 Thomson/Reuters. All rights reserved.

 
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Oil and gas company Hess Corp. said it filed with regulators to spin off its gas station and convenience store network, the latest business the company is shedding in response to a campaign by activist investor Elliott Management.
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2014-05-08
Wednesday, 08 Jan 2014 11:05 AM
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