Oct 21 (Reuters) - Activist hedge fund Jana Partners LLC has taken a 7.5 percent stake in oil producer QEP Resources Inc , according to regulatory paperwork filed on Monday.
Jana, which is now QEP’s largest shareholder, first invested in the Denver-based company last year. The hedge fund said its talks with QEP management to improve results have not been constructive and that it believes QEP shares are “undervalued.”
Jana said in a filing with the U.S. Securities & Exchange Commission that it prefers QEP spin off its pipeline business as a separate business.
A representative for QEP was not immediately available to comment.
Shares of QEP rose 5.4 percent to $32.78 in after-market trading on Monday following the disclosure.