London Stock Exchange Group (LON:LSE) will hold a vote on the removal of chairman Donald Brydon and retention of CEO Xavier Rolet, the blue-chip company has said. The move follows calls from activist investor TCI Fund Management.
London Stock Exchange’s share price has been little changed in today’s session, having inched 0.11 percent higher to 3,737.00p as of 14:09 GMT, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.52 percent lower at 7,445.05 points. The group’s shares have added more than 30 percent to their value over the past year, and are up by some 28 percent in the year-to-date.
London Stock Exchange announced in a statement today that it had received a letter of requisition by the Children’s Investment Fund (TCI), which owns five percent of the company, requiring the board to convene a general shareholder meeting for the removal of chairman Donald Brydon and the retention of chief executive Xavier Rolet, subject to his consent.
“LSEG will meet its obligations in respect of the requisition and intends to publish a circular in connection with such requisition meeting as soon as reasonably practicable,” the company said in a statement.
The move comes after earlier this week, the FTSE 100 company said that it had followed the proper procedure for its chief executive succession, after TCI contended that the FTSE 100 company was forcing Rolet to leave.
Other shareholders to back Rolet
A small institutional investor told Reuters today that he would be happy for Rolet to remain as chief executive to guide the business through Britain’s impending exit from the European Union.
“Particularly with Brexit going on, you need someone who knows what they’re doing there (at the LSE),” the investor said. A source close to Egerton Capital, another LSE investor, also told the newswire that the hedge fund will support a resolution to keep Rolet at the company.