Elliott asks UK’s Taylor Wimpey to look for external CEO after Redfern exit
(Reuters) – Activist investor Elliott on Friday published a letter sent to Taylor Wimpey asking the British housebuilder to find a chief executive officer from outside the organisation, after Pete Redfern resigned earlier this week.
Elliott also disclosed that it was among the top five shareholders in Britain’s third-largest homebuilder, although it did not disclose exactly how much stake it holds.
Taylor Wimpey said on Wednesday that Redfern would step down as CEO and will leave the business once a suitable candidate has been found. Media reports have suggested Redfern’s planned exit after 14 years in the role came after Elliott built a stake.
“A series of operational and strategic missteps has resulted in persistent share-price underperformance, leaving (Taylor Wimpey) shareholders frustrated and lacking confidence in the company,” Elliott said in a letter.
Taylor Wimpey did not immediately respond to Reuters’ request for comment.
Shares of the London blue-chip company, which lost about 15% of their value in 2020, are up merely 2% this year compared with top housebuilder Barratt Development’s more than 10% rise.
Elliott in recent months has been ramping up its campaign for changes in London-listed companies, including energy firm SSE, drugmaker GlaxoSmithKline and pharmaceutical services group Clinigen.
(Reporting by Yadarisa Shabong and Aby Jose Koilparambil in Bengaluru; Editing by Amy Caren Daniel)