Breaking News: Suncor Reaches Deal with Activist Investor

The refreshed board will form a committee to conduct the review of the downstream assets, Suncor said Monday in a statement. The retail group includes more than 1,500 gas stations and store locations operating under the Petro-Canada brand.

Suncor rose 2.5% in premarket trading as of 7:40 a.m. in New York.

The new board members  include former Talisman Energy executive Jackie Sheppard, ARC Financial partner Chris Seasons and former BHP executive Ian Ashby.

Elliott made a public demand in April for changes to the board and for a strategic review, and cited Suncor’s poor safety record as one reason for the stock’s underperformance compared with other Canadian oil sands producers.

Then, on July 7, a worker died at Suncor’s Base Plant mine in northern Alberta. Chief Executive Officer Mark Little departed the following day.

Suncor has installed Kris Smith, executive vice president for downstream operations, as interim CEO while it searches for a permanent replacement.

“I think the street wants him to be somebody from outside the company to change the culture,” Laura Lau, chief investment officer of Suncor shareholder Brompton Funds, told Bloomberg last week.