Marathon Petroleum Accede To Elliott

2017 started well for one activist, at least. On January 3, Marathon Petroleum announced that it would accede to many of Elliott Management’s demands from less than two months earlier, likely avoiding a proxy fight as the already once-delayed nomination deadline approached. Shares rose 6.8% on the news, but have since lost some of their snap.

The activist may have offered kind words to Chairman Gary Heminger on account of his record at the helm, but it wasn’t satisfied with plans to drop down assets into its MLP on a three-year timeline. Instead, it argued for an immediate drop, reducing associated tax liabilities and uncertainty, as well as a reshuffling of...