Lagging UK stocks are red meat for campaigners – Reuters

The GSK logo is displayed in this illustration taken on January 17, 2022.

LONDON, Jan 19 (Reuters Breakingviews) – Activist investors are hungry for the UK. More than 40% of European companies targeted by caged shareholders in 2021 are listed in London, more than in previous years, according to investment bank Lazard’s (LAZ.N) annual report. Scattered inventory is an important factor.

Open capital markets and shareholder-friendly governance in Britain have long attracted campaigners. However, campaigning shareholders also have a rich choice of targets across continental Europe. Artisan Partners and Bluebell Capital Partners pulled off a coup when they successfully campaigned for French yoghurt maker Danone to replace Chairman and CEO Emmanuel Faber.

Underperforming stocks explain the greater appeal of the UK. The FTSE 350 index has gained just 7% since the start of 2020, according to data from Refinitiv, while the benchmark Euro Stoxx index is up more than 20%. Activist Elliott Management revealed positions in British companies last year, including pharmaceutical giant GlaxoSmithKline (GSK.L), utility SSE and homebuilder Taylor Wimpey (TW.L). Whether these campaigns will succeed remains to be seen. But as long as share prices follow, British companies will be tasty targets. (By Peter Thal Larsen)

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Editing by Richard Beales and Sharon Lam