RWE shares jump as Elliott takes stake, wants buyback lift

(Sharecast News) - Shares in German energy form RWE rose on Monday after activist investor Elliott revealed it had taken an almost 5% stake in the company and called for an increase its €1.5bn share buyback programme. RWE last week cut its investment programme by €10bn by 2030 which Elliott said was "an important first step towards more disciplined capital allocation"

"However, we share the market's disappointment with the lack of clarity regarding the company's commitment to enhance shareholder returns," it said in a statement.

"Given the announced capex reduction and RWE's persistent undervaluation, we believe there is a compelling opportunity to significantly increase and accelerate the ongoing share buyback programme."

Reporting by Frank Prenesti for Sharecast.com