London Stock Exchange Group’s (LON:LSE) chairman is expected to survive an attempt by an activist investor to oust him, the Guardian reports. While the Children’s Investment Fund wants Donald Brydon to go, shareholder advisory groups are reportedly not convinced.
London Stock Exchange’s share price shed 0.50 percent to close at 3,780.00p on Friday, underperforming the broader UK market, with the benchmark FTSE 100 index ending the session 0.57 percent up at 7,490.57 points. The group’s shares have added just under 35 percent to their value over the past year, as compared with about a seven-percent rise in the Footsie.
LSE’s Brydon to survive attempt to oust him
LSE’s chairman faces a vote this week on his future following a row with the Children’s Investment Fund (TCI), which owns five percent of the exchange. The Guardian reports, however, that two influential shareholder advisory bodies, ISS and Glass Lewis, have advised their clients to vote against TCI’s resolution, the only item on the agenda at Tuesday’s specially convened meeting.
ISS said TCI had not proved its case that removing Brydon would be beneficial for the company, and looking for a chief executive and a chairman at the same time would not be ideal, while Glass Lewis argued that it had found little evidence to support the claims that shareholders had lost faith in Brydon as chairman or that the company might face difficulty attracting quality chief executive candidates to serve under him.
The news comes LSE said last month that its chief executive will step down immediately, while its chairman will not stand for re-election at the annual general meeting in 2019, as it looks to end the ongoing row with TCI.
Analysts on LSE
JPMorgan Chase & Co, which has a ‘neutral’ rating on LSE, set a price target of 3,955p on the shares last week. According to MarketBeat, the FTSE 100 group currently has a consensus ‘buy’ rating and an average valuation of 3,997.83p.