Algonquin Power & Utilities is being urged to sell a majority of its renewable assets to reduce debt and improve earnings by activist hedge fund Starboard Value, which recently revealed it had a built a 7.5% holding in the business and is now the power company's largest shareholder, according to a report by Reuters.

Algonquin, which has seen its debt pile rise to around $7.5bn following a series of acquisitions in recent years, said in May it would launch a review of its renewable energy group, following a push for changes by by Corvex Management and other activist firms.

Algonquin's renewable assets include a 42% stake in Atlantica Sustainable Infrastructure, which also launched a strategic review of its operations in February.