Rentokil surges as Nelson Peltz's Trian said to have taken 'significant' stake

12th Jun 2024 08:01

(Sharecast News) - Rentokil surged to the top of the FTSE 100 on Wednesday following reports that activist investor Nelson Peltz's Trian Fund Management has taken a "significant" stake in the pest control company.

According to sources cited by Bloomberg, the investment firm is now among the top 10 shareholders in Rentokil, which owns Terminix in the US.

Meanwhile, CNBC said a spokesperson for Trian said it was looking to engage with Rentokil's leadership on "ideas and initiatives to improve shareholder value".

At 0835 BST, the shares were up 13.3% at 470.60p.

Russ Mould, investment director at AJ Bell, said: "Peltz is likely to pursue a big shake-up of a company which has struggled in comparison with its US peer Rollins, both in share price terms and financial performance.

"Given Rentokil does a large chunk of its business across the Atlantic this could include a push to shift its primary listing to the US, which would be another blow to the prestige of London as a listing venue. Trian pursued a similar approach with Ferguson which made the move in 2022."