31st Jul 2015 15:33
LONDON (Alliance News) - ValueAct, a San Francisco-based hedge fund, has become Rolls Royce Holdings PLC's top shareholder in a move likely to increase pressure on the company to improve its performance, the Financial Times reported on Friday.
Shares in Rolls Royce closed up 6.3% at 797.00 pence following the announcement.
According to the FT, the activist hedge fund said in a regulatory filing that it has built a 5.4% stake in Rolls Royce.
ValueAct is known for pressing management teams from behind the scenes to refocus their companies, the paper reports, adding that Rolls Royce said it would be meeting with the hedge fund in the coming weeks.
This comes after Rolls Royce issued a string of profit warnings in the past year. On Thursday, the aerospace and engineering group posted a 57% drop in pretax profit in the first half of its financial year to GBP310 million from GBP713 million in the same period the prior year.
http://www.ft.com/cms/s/0/58212f4c-3792-11e5-b05b-b01debd57852.html#axzz3hTxIm4QQ
By Karolina Kaminska; [email protected] @KarolinaAllNews
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