14th Dec 2015 06:51
LONDON (Alliance News) - A split has emerged among shareholders in Rolls-Royce Holdings PLC, the Sunday Telegraph reported, after another investor expressed unease about the attempt by activist investor ValueAct to get a seat on the engine-maker's board.
A major Rolls-Royce investor, unnamed, told the paper that while it would accept a decision by Rolls-Royce to grant ValueAct a seat on the company's board, it did not believe the activist was focused on improving the growth prospects of the company.
"We think that ValueAct are more serious than some activist investors, but their interest is mainly in extracting what their name would imply: value," the shareholder said. "Rolls is one of the few remaining serious British industrial companies, and one would hope it had a future beyond producing cash flow for the next few years. In the long run, we want the business to be reinvested in."
ValueAct has built up a 10% stake in Rolls-Royce in recent months, in the wake of a slew of profit warnings by the company, as it takes myriad hits in its civil aerospace, military and marine operations.
http://www.telegraph.co.uk/finance/newsbysector/industry/12046851/Rolls-shareholders-split-over-activist-investor.html
By Sam Unsted; [email protected]; @SamUAtAlliance
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