The hedge fund Elliot Management has called on Marathon Petroleum to conduct a strategic review and consider splitting into three businesses.
The company owns about 4% of the refiner.
The firm said Marathon should consider separating its chain of gasoline and convenience stores or break into three businesses which would be focused on retailing, refining and midstream operations which hold pipeline and storage assets.
Elliot also said the firm was “severely undervalued” and said Marathon should also look at transferring assets which could go into a master limited partnership.
In a letter to Marathon’s board, Elliot said: “Marathon’s undervaluation is most glaring when the value of its three businesses is summed together.”
The move comes after activist hedge fund Jana Partners, which raised its stake in Marathon Petroleum to about 0.8% last week, pushed the firm to separate its pipeline and other midstream assets.