Activist investor D.E. Shaw & Co. LP has built a stake in Emerson Electric Co. and is planning to push for a split of the technology and engineering company, Bloomberg News reported, citing people familiar with the matter.
The hedge fund believes that Emerson should separate its automation solutions business from its other divisions, which cater to commercial and residential markets, according to the sources.
New York-based D.E. Shaw reportedly also plans to make the automation-equipment maker consider taking on more debt to fund a $7 billion share buyback.
Representatives for D.E. Shaw and Emerson Electric declined Bloomberg's requests for comment.
