UK's Wood Group rises as ex-Elliot fund manager calls for share buyback

Sparta Capital

08/12/2022 14:58

** Shares of British oilfield services and engineering firm
John Wood Group Plc  WG.L  rise 8% to 135p, top pct gainer in
FTSE midcap  .FTMC  index
    ** Former Elliot Management activist fund manager Franck
Tuil told John Wood Group to buy back some of its stock to avoid
becoming a takeover target
    ** Stock on track for best day in six weeks 
    ** Tuil's $600 mln multi-strategy investment fund, Sparta
Capital, publishes letter stating that WG's stock is cheap
enough to make it an M&A target, and believes co has sufficient
cash for share buyback
    ** Co says it is still of view set out on recent capital
markets day for not buying back shares and intends to focus on
driving sustainable free cash flow
    ** Sparta Capital is a significant shareholder, a source
familiar with the matter told Reuters, without disclosing the
size
    ** John Wood stock down ~30% YTD, as of last close
 (Reporting by Sruthi Nrasimha Chari in Bengaluru)
 ((Sruthinarasimha.chari@thomsonreuters.com))