Jana, the activist hedge fund trying to stop EQT Corp.’s acquisition of Rice Energy, claims EQT is motivated to complete the deal because in doing so it would enrich improve bonuses for its senior management at the expense of its stockholders, according to The State Journal.
Shortly after it was announced in July, Jana opposed the acquisition. It owns just under six percent of EQT stock. It believes a better strategy for EQT to maximize shareholder value would be to concentrate on drilling wells and to divest itself of its pipeline assets by spinning off its EQT Midstream business.
The $6.7 billion acquisition of Rice Energy comes with 187,000 acres of Marcellus Shale acreage in Pennsylvania, 64,000 acres of Upper Devonian Shale in Pennsylvania, 105,000 acres of Utica Shale in Pennsylvania and 65,000 Utica Shale acres in Ohio.