Activist investor Elliott acquires shares in Taylor Wimpey

U.S. assailants now buy Taylor Wimpey stake: Activist investor Elliott targets £ 6 billion of construction giants after the battle between GlaxoSmithKline and SSE

  • Elliott Management Soars Taylor Wimpey’s Shares, According to City Sources
  • Elliott specializes in buying stock and has since sought change to raise prices.
  • This is the third time Elliott has partnered with an FTSE 100 company.

The world’s most powerful activist investor secretly buys Taylor Wimpey’s stake, raising speculation that FTSE 100-listed homebuilders could be a £ 6 billion takeover target. increase.

Elliott Management has soared shares in one of Britain’s largest residential real estate developers, a construction company, after a slump in stock prices this year, despite enthusiastic demand for new homes, according to city sources. rice field.

Elliott, also known as the Elliott Advisor, specializes in buying shares in listed companies and accelerating change to raise stock prices.

On radar: City sources said Elliott soared Taylor Wimpey’s stock after the company’s stock price stagnated.

The assault on Taylor Wimpey is the latest battle for activists famous for persuading courts to detain Argentine naval vessels during fierce negotiations over sovereign debt repayment.

This is the third time Elliott has partnered with the FTSE 100 company after investing in energy group SSE and pharmaceutical giant GlaxoSmithKline.

In April of this year, it drew attention to construction companies, boosting the acquisition by Berkeley DeVeer of Avant Homes, one of the UK’s largest privately owned homebuilders.

Under the deal, controversial builder Jeff Fairburn, who has control of Berkeley Devia and chairs Avant Holmes, will be the source of Persimmon after receiving a £ 75m bonus in 2017. After the CEO was banished, he returned to the center of housing construction.

Last month, Elliott took short positions in Bellway and Barat, betting that stocks would fall. Elliott’s move to Taylor Wimpey, which builds 15,000 new homes annually and has been led by CEO Pete Redfern since 2007, may be related to a deal with Fairburn. Is not yet clear. The size of the stake is also a mystery.

Much of Elliott’s previous activist investment has led to significant corporate activity. City sources speculated that Elliott’s move against Taylor Wimpey could lead US-based suitors to bid billions of pounds on some or all of the group.

This year, Elliott also bought a 5% stake in Clinigen, which is listed on AIM, a drug distributor that issued a profit warning in the summer. Following the stakebuilding, Elliott reported with Klinigen executives about the dissolution of the company and the sale of some divisions, according to a September report.

According to a Sky News report, Elliott was ready to participate in a “hostile” campaign with Klinigen. Then last week it was revealed that Clinigen received a £ 1 billion takeover approach from private equity firm Triton Partners.

Elliott also became a major shareholder of GlaxoSmithKline and made a series of controversial demands on the board of directors of a major pharmaceutical company.

So far, Sir Jonathan Simmons, chairman of GlaxoSmithKline, has rejected Elliott’s request in favor of CEO Emma Walmsley. In August, Mail on Sunday revealed that Elliott had accumulated shares in SSE, a power giant listed on Footsie, which powers five million Briton homes.

Later, reports emerged claiming that Elliott had urged SSE’s management to split into two by spinning off the renewable energy sector.

However, the call was rejected by the SSE. Instead, SSE plans to double its strategy to transform itself into a major renewable energy player.

Three years ago, Elliott bought a huge stake in Premier Inn operator Whitbread and demanded that the company sell its Costa Coffee chain. Four months later, Coca-Cola agreed to buy Costa Coffee from Whitbread for £ 3.9 billion.

And last year, AstraZeneca paid $ 39 billion (£ 29.4 billion) to Alexion Pharma, a US pharmaceutical group, after Elliott repeatedly asked US-listed companies to sell to potential buyers.

Elliott was founded in 1977 by Republican donor Paul Singer and received $ 1.3 million from friends and family. Currently, about $ 48 billion is managed and the singer’s personal wealth is estimated at $ 4.3 billion. His son Gordon runs a London office and is believed to be behind the company’s largest investment in Europe.

Besides buying and selling stocks, Elliott also invests in commodities, private companies and debt. This includes distressed securities from sick companies and struggling countries that are occasionally controversial.

Both Taylor Wimpey and Elliott declined to comment.


Activist investor Elliott acquires shares in Taylor Wimpey

Source link Activist investor Elliott acquires shares in Taylor Wimpey

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