Pendragon activist investor demands shake-up
13 March 2023
Pendragon activist investor Palliser is demanding a boardroom shake-up in the wake of a failed £400m takeover bid. Palliser, which owns around 4% of Pendragon, is calling for three of its directors to be inserted on the Evans Halshaw and Stratstone retailer’s board.
In a letter submitted last week, Palliser claimed the board had become distracted by the failed Hedin takeover. It wants chairman Ian Filby and chief executive Bill Berman to refocus on profitability by expanding its aftersales operation.
Palliser was formed in 2021 by James Smith, formerly of Wall St activist Elliott Management. Its campaign against Pendragon comes weeks after masterminding a boardroom clear-out of FTSE 250 oil firm Capricorn Energy.
Pendragon shares fell 0.5% to 18.1p last week. Hedin struck a 29p-a-share take-private deal with the board in November 2022, valuing Pendragon at £400m. The deal collapsed weeks later after Hedin was unable to secure financing.
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