Activists Push UK Companies to 'Leave London'
There has been a surge in companies listed on the London Stock Exchange switching to the US market and elsewhere. Behind this is the backing of activist shareholders, who claim that stock prices are more likely to rise if they are traded on markets outside the UK. 12 June 2024
Published in Nikkei Financial on June 12, 2024, Akira Yamashita’s article delves into the increasing trend of companies listed on the London Stock Exchange moving to the US market and elsewhere. The shift is largely driven by activist shareholders who argue that these markets offer better stock price potential.
Investors like James Smith, founder and CIO of Palliser Capital, and Daniel Loeb of Third Point have argued for such relocations, citing significant potential share price increases and more favorable valuations in foreign markets. Comments from Morningstar’s Allen Goode and Shell’s CEO also highlight dissatisfaction with the current valuations on the London market.
Ali Saribas of SquareWell also comments to Akira Yamashita, cautioning that while activist demands might appeal to boards of directors, they could create conflicts of interest and divert companies from necessary long-term business reforms.
For more details, read the full article here (Subscription Required, in Japanese).
