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WSJ reports that Starboard has taken a stake of nearly 5% in Fluor Construction.

WSJ reports that Starboard has taken a stake of nearly 5% in Fluor Construction.

The Wall Street Journal, citing sources familiar with the situation, reported that activist investor Starboard Value had taken a stake of nearly 5% in the construction company Fluor. Starboard Value plans to seek ways to increase the shares of the company.

Fluor shares jumped 6.7% following the release of the report. Stock has fallen by nearly 3% this year.

Fluor has an almost 40% stake in small nuclear reactor developer NuScale Power, which has seen a jump in shares this year due to increased demand for data centers and other technologies fueled by the artificial-intelligence boom.

Journal reported that Starboard believes that Fluor’s core business has been undervalued on the market in comparison to the value investors attribute to NuScale.

According to the report, Fluor's activist investor believes that it should explore all options, including selling its NuScale shares.

Starboard believes that Fluor, a company that helps build critical infrastructure in the United States, should also benefit from the new policies of President Donald Trump, which are increasing planned investments.

Starboard and Fluor both did not respond immediately when contacted.

Fluor reported in August that its second-quarter revenue fell by 6% to $4 billion. This was also below analysts' expectations of $4.55billion.

The construction company revised its projected annual adjusted profit per shares downwards to between $1.95 and $2.15 from an earlier projection of $2.25 to $2.75 each. (Reporting and editing by Alan Barona in Mexico City, Juby Babu from Mexico City)

(source: Reuters)