Rats! Rentokil London future in doubt after Nelson Peltz builds a stake
Shares in Rentokil have surged today after the activist investment firm of notorious billionaire Nelson Peltz revealed it had snapped up a stake in the company, raising questions over its future on the London Stock Exchange.
Trian Partners, founded by Peltz, told Bloomberg News it had reached out to the Crawley-based pest-exterminator with ideas to “improve shareholder value” after building a stake that put it among the top 10 shareholders in the firm.
Rentokil’s US rival Rollins has climbed more than 15 per cent in the past 12 months while the London-listed firm has shed nearly 30 per cent of its value. News of the Peltz stake triggered an 11 per cent spike in morning trading today.
Analysts say Peltz, who recently abandoned an activist campaign against Disney, is now likely to chase a major shake-up of the firm and could campaign for it to swap its listing to the US.
“Given Rentokil does a large chunk of its business across the Atlantic this could include a push to shift its primary listing to the US, which would be another blow to the prestige of London as a listing venue,” said AJ Bell investment director Russ Mould.
Rentokil did not immediately respond to a request comment. Peltz previously successfully urged distribution outfit Ferguson to swap its listing from London to New York in 2022.
After FTSE 100 firm Ashtead warned of a US-swap this week, fears are likely to grow that Rentokil could follow suit due to the strength of its position across the Atlantic. Building supplier CRH similarly ditched its London hub for New York earlier this year.
Any move from Rentokil would add to an exodus of listed companies which have either swapped their primary listings or been snapped up cashed up private buyers. Some £94bn worth of companies have left the London market this year, according to data from investment bank Peel Hunt.
Peltz’s Trian partners has built a fearsome reputation for waging activist campaigns on global boardrooms, including American consumer giants Heinz and Procter & Gamble.
He currently has a board seat at London-listed Unilever after calling for a break-up of the firm in 2022.