Activist investor Roustan eyes Power Corp. of Canada

Shareholder activist Graeme Roustan is angling to break up the conglomerate Power Corporation of Canada.

Roustan is announcing Tuesday that he has reached out to Power Corp. Chairman and Co-CEO Paul Desmaris Jr. asking for a meeting to discuss selling and or spinning off non-core divisions.

Roustan, who has previously targeted hockey stick maker Performance Sports Group, confirmed Tuesday he has acquired shares in Power Corp., whose website says it owns interests in “financial services, renewable energy, communications and other business sectors.”

The company’s market capitalization of $15 billion would almost be double what it is today if the company had focused on its core business of owning companies in insurance and financial services, Roustan says.

Among Power Corp.’s holdings are Great-West Lifeco, a financial services holding company, IGM Financial, a personal financial services company, and Pargesa, a Switzerland-based conglomerate, as well as investments in China Asset Management Co., and the Sagard Funds.

Power Corp.’s shares have risen more than 7 percent in the last 12 months to close Monday at $32.89 per share. The shares on Tuesday were recently up 11 cents at $33 on the Toronto Stock Exchange.

Last month, Power Corp. agreed to sell private investment company Alvest for an undisclosed amount.