Why Telecommunications Company Crown Castle's Shares Are Gaining Today

Activist investor Elliott Investment Management is reportedly reviving its efforts to drive change at Crown Castle Inc CCI, a major player in the wireless tower sector.

Despite an earlier attempt that saw limited success, Elliott is now holding a $2 billion stake in Crown Castle, boasting a market valuation nearing $45 billion, WSJ reports.

The firm aims to actively engage with Crown Castle to explore strategies for enhancing its stock performance and may even consider nominating director candidates before Crown Castle's annual shareholder meeting in the spring, the report adds.

In July 2020, Elliott disclosed a $1 billion economic interest in Crown Castle and criticized the company's fiber business strategy, labeling Crown Castle's fiber investments as "undisciplined."

Elliott also called for focusing on higher-return opportunities and a shake-up of Crown Castle's "long-tenured" board. In response, Crown Castle refreshed its director slate and implemented a mandatory board-retirement policy but continued to invest heavily in fiber, the report adds.

Crown Castle's stock has since suffered due to higher interest rates and reduced 5G spending by major carriers, as per the report.

Price Action: CCI shares traded higher by 5.04% at $108.80 premarket Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.