US activist investor Corvex Management is demanding a seat on the board of Whitbread following prolonged poor performance at the Premier Inn owner.
The investment firm, which holds a 6 per cent stake in the FTSE 100 business, has called for a shareholder vote to appoint its partner James Gemmel as a director.
Keith Meister, managing partner at Corvex, highlighted growing concern among investors regarding what he described as the company's continued commitment to the status quo. He also pointed to issues surrounding the structural complexity of the business and its approach to capital allocation.
In an apparent U-turn, Corvex dropped its demand for Whitbread to be sold. The activist investor had previously pushed for a complete sale of the business as recently as May.
Whitbread responded to the board demand by defending its ongoing strategy. The company stated that it continues to make strong progress with its five-year plan to deliver improved margins and returns, which it expects will generate an additional £2 billion for shareholders by 2031.
Following the announcement, Whitbread shares edged up 0.5 per cent in trading, though the stock remains down 8 per cent over the past year. Whitbread is one of the largest hospitality companies in the United Kingdom, operating the Premier Inn hotel chain alongside several restaurant brands. The FTSE 100 index tracks the 100 largest companies listed on the London Stock Exchange.
Schroders board changes
City fund manager Schroders has appointed banker Matthew Westerman as its new chairman ahead of a planned £9.9 billion takeover by American asset manager Nuveen.
Westerman will lead a slimmed-down board that includes Nuveen boss William Huffman alongside three of his senior executives. The refreshed board structure is designed to guide the historic City finance house through its merger with its United States rival.
Schroders confirmed that the transaction has met all regulatory approval requirements and should complete on October 1.
Shareholders, including the founding family of the 222-year-old investment firm, have backed the proposal to delist Schroders from the London Stock Exchange. The merger will create a combined asset management group managing approximately £1.9 trillion in assets.
Westerman previously held senior banking roles at HSBC and Goldman Sachs. He will succeed Elizabeth Corley as chairman, while the three executive directors of Schroders are set to remain in their roles.
Founded in London in 1804, Schroders is one of Britain's oldest independent investment management businesses, offering wealth management and fund administration to institutional and private clients globally.
M&C Saatchi deal collapse
London-based advertising group M&C Saatchi has abandoned plans to sell its Antipodean business to local management teams after negotiations broke down without agreement on terms.
Shares in the company dropped 8.2 per cent following the announcement. M&C Saatchi has been working to simplify its corporate structure and reduce costs amidst challenging market conditions.
The company had previously signed a non-binding agreement to sell its Antipodean division for one dollar due to the unit's low-margin contribution to overall profits. The Antipodean operations cover the agency's business activities in Australia and New Zealand.
Financial analysts reduced revenue and profit forecasts for the group's Asia-Pacific sector after the Australian operations were classified as a discontinued operation in financial reports.
M&C Saatchi stated that its local team is currently in discussions with clients regarding ongoing work. The agency noted that, where appropriate, there is potential to transition client work to other parts of the wider global group.
The broader advertising sector has faced severe headwinds, with companies reporting weak corporate confidence, widespread event cancellations, and project delays since the start of the Iran war. M&C Saatchi was founded in 1995 and operates an international agency network handling major global commercial accounts.
