Shareholder backlash pushes up low-ball London takeover bids
Top shareholders of London-listed firms are pushing back on takeover bids this year amid concerns buyers are capitalising on low valuations to pick up companies on the cheap. Foreign buyers have targeted companies across the London Stock Exchange this year including FTSE 100 firms Schroders, Intertek and Beazley. Retail investment firm AJ Bell said it [...]
Concerns over aggressive low-ball takeover bids by foreign investors are rising among top shareholders of London-listed companies this year. The decline in UK valuations compared to global peers has attracted buyers like Schroders, Intertek and Beazley, leading to a surge in bids worth £69.3bn by year-end 2026, according to AJ Bell.
Henrik Persson, head of public M&A at Cavendish, noted that shareholders are becoming vocal in opposing deals, demonstrating their active ownership. Since 2023, 154 bids for UK companies with a market value over £100m have been made, wiping out £165bn of market capitalisation. The average takeover price paid has hit 45% of companies' share prices, according to AJ Bell.
While some firms like Segro have rejected multiple bids, others like Intertek have accepted offers, leading to shareholder activism. Despite some companies listening to shareholder concerns, others, like DCC Energy, have agreed to controversial buyouts.
Written by urgent.news from City AM's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
