In a letter Wednesday, New York hedge fund Engine Capital said the Calgary-based gas station giant has been “unable to translate its advantaged strategic position and quality assets into adequate returns for shareholders.” The fund demanded that Parkland explore corporate “alternatives,” including a potential spinoff of its Burnaby, B.C., oil refinery, and appointing new directors to Parkland’s board. (The Logic)

Talking point: Engine Capital, with US$750 million in assets under management, owns about a two per cent stake in Parkland. The fuel company, which operates a massive network of gas stations and convenience stores, pursued a series of acquisitions in recent years that added assets like the Burnaby oil refinery to its portfolio. That diversification has taken Parkland further away from a “pure play” fuel distributor, Engine argued in the letter, causing the company’s share price to lag its peers. Parkland shares closed up nearly 10 per cent on the Toronto Stock Exchange Wednesday.