A Marathon gas station in Chicago.
Getty Images
The call for Marathon Petroleum to split into separate businesses is gaining momentum among activist investors.
Hedge fund D.E. Shaw is supporting the breakup of Marathon, joining Elliott Management in urging the refiner to split off Speedway gas stations, sources familiar with the matter told CNBC’s David Faber.
Shares of Marathon jumped more than 5% following the news.
Elliott, which owns about 2.5% in Marathon, said in a statement on Wednesday that Marathon should divide into separate retail, midstream and refining companies to “remedy the company’s chronic underperformance.”
Elliott said the company can unlock more than $22 billion in value for shareholders with the split-up, which could give the stock a 61% boost.
Marathon has plunged more than 34% in the past 12 months, underperforming its peers including Phillips 66 which is down 13% during the same period.