Key Takeaways
- Activist investor Nelson Peltz’s Trian Partners took what it called a “significant stake” in U.K. pest control company Rentokil Initial.
- Trian said it was now a top 10 shareholder in Rentokil, which also owns Terminix in the U.S.
- Peltz’s Rentokil investment comes two months after his proxy fight with Walt Disney failed.
American depositary receipts (ADRs) of Rentokil Initial Plc (RTO) skyrocketed Wednesday when activist investor Nelson Peltz’s Trian Partners took a large stake in the British pest control firm that also owns the Terminix brand in the U.S. and others.
The hedge fund confirmed in an email to Investopedia that Trian holds “a significant position” in Rentokil, and is now a top 10 shareholder, although it didn’t disclose the exact amount. The firm added that it has reached out to Rentokil “to discuss ideas and initiatives to improve shareholder value.”
Rentokil told Investopedia it doesn’t comment on investors’ positions, and that “we consider and welcome input from all of our shareholders.”
Peltz’s Plans for Rentokil Unclear
It’s unclear what Peltz’s plans for Rentokil are. The move came just two months after his proxy fight with Walt Disney (DIS) failed when shareholders didn’t elect him and former Disney Chief Financial Officer Jay Rasulo to the board.
ADRs of Rentokil plunged in October to their lowest level since the pandemic after the company reported it faced a “soft consumer demand environment” in North America. After a slight recovery in March, they stumbled once again until Wednesday’s session, which lifted them into positive territory for the year.
Rentokil ADRs had gained almost 14% to $30.66 in late trading Wednesday..
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