Rolls-Royce has caved to ValueAct Capital, giving the activist hedge fund a board seat. ValueAct owns 10.8% and is the airline engine maker’s largest shareholder.
Join our free newsletter for exclusive insights we don’t share elsewhere.
Rolls-Royce adds ValueAct COO Brad Singer as expected.
The Electron Global Fund was up 2% for September, bringing its third-quarter return to -1.7% and its year-to-date return to 8.5%. Meanwhile, the MSCI World Utilities Index was down 7.2% for September, 1.7% for the third quarter and 3.3% year to date. The S&P 500 was down 4.8% for September, up 0.2% for the third Read More
Rolls says – “There is very strong alignment between the ValueAct management and the board. There has been no fundamental disagreement at all on the direction of the company, in fact quite the opposite.”
ValueAct COO and new Rolls board member says – ““I have been deeply impressed with the senior leadership team and directors of Rolls-Royce … I look forward to working closely with the board members and management team as they execute their plans for sustained long-term success.”
With ValueAct on the board, look for the fund to push for a spinoff of the marine arm.