Activist Starboard Takes Stake in Fluor, Urges NuScale Options

Activist investor Starboard Value has acquired nearly a 5% stake in Fluor Corporation, prompting a sharp rise in Fluor's stock price due to expectations of strategic changes. Starboard is urging Fluor to reconsider its investment in NuScale Power, a nuclear engineering firm in which Fluor owns about 40%, arguing that this stake's value has not been fully realized by shareholders. NuScale’s shares have surged over 145% this year, while Fluor's shares had remained relatively stagnant, highlighting a valuation gap that Starboard aims to address, possibly through a partial or full sale of the NuScale stake. Additionally, Starboard sees potential growth in Fluor’s core engineering and construction operations, especially given federal infrastructure spending initiatives under President Trump’s administration. The activist firm's involvement may compel Fluor to streamline its portfolio and capitalize on new infrastructure opportunities, which could have wider implications for the construction sector. Market reactions indicate increased investor confidence that Starboard’s intervention could unlock further shareholder value.