Vague demand for board refresh from Causeway likely a hangover from £2bn rights issue
The last time Rolls-Royce had an US activist fund on its tail, the aero-engine manufacturer took the unusual step of inviting one of its representatives onto the board. ValueAct Capital was judged to have constructive ideas and useful industry expertise. The four-year relationship, which ran until 2019, turned out harmoniously.
Causeway Capital Management, the latest US fund with a 9% stake, looks a different beast, at least to judge by its comments to the FT at the weekend. The striking feature was the wooly nature of its main grumble: a demand for a board “refresh” in the interests of “fresh thinking”. What does that mean?
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