Activist Investor Targets Whitbread, Schroders Names New Chairman
Corvex Management seeks board seat at Premier Inn owner, while Schroders prepares for its merger with Nuveen.
US activist investor Corvex Management is demanding a seat on the board of Whitbread, the owner of Premier Inn, citing the company's "prolonged" poor performance. Corvex, which holds a 6% stake in the FTSE 100 firm, has called for a shareholder vote to appoint its partner, James Gemmel, to the board. Keith Meister, managing partner of Corvex, expressed concern over the group's "continued commitment to the status quo" and its "structural complexity and approach to capital allocation." However, Corvex has withdrawn its previous demand for Whitbread to be sold.
Whitbread stated that it is making "strong progress" with its five-year plan to improve margins and returns, aiming to generate an additional £2 billion for shareholders by 2031. Despite this, the company's shares have declined 8% over the past year, though they saw a slight increase of 0.5% recently.
Schroders Merger Preparations
In a separate development, Schroders has appointed Matthew Westerman as its new chairman in anticipation of its £9.9 billion takeover by Nuveen. Westerman, a former banker at HSBC and Goldman Sachs, will lead a streamlined board that includes Nuveen CEO William Huffman and three of his executives. This move is intended to facilitate the merger of the historic City finance house with its US rival.
Schroders announced that the deal has received regulatory approval and is expected to be finalized on October 1. Shareholders, including members of the founding family, have supported the plan to delist from the London Stock Exchange and create a combined entity managing approximately £1.9 trillion. Westerman will succeed Elizabeth Corley, while Schroders’ three executive directors will remain in their positions.
M&C Saatchi Abandons Sale Plan
M&C Saatchi has called off plans to sell its Antipodean business to local management due to a failure to agree on terms. Shares in the London-based advertising group fell 8.2% following the announcement. The company had previously entered into a non-binding agreement to sell the arm for a nominal sum, citing its low-margin contribution.
Analysts have revised down forecasts for the firm's Asia-Pacific sector after classifying the Australian arm as a discontinued operation. M&C Saatchi indicated that discussions are ongoing with clients regarding existing work and the potential transfer of projects to other parts of the wider group. The sector has reportedly been impacted by weak confidence, event cancellations, and project delays since the start of the Iran war.