Activist investor Elliott Investment Management has called on Taylor Wimpey to make major changes in the company’s leadership, which it has blamed for the builder’s falling share price, according to reports.
The news comes days after Taylor Wimpey’s chief executive officer Pete Redfern announced his resignation after 14 years. Shares at the time were 29 per cent down on the company’s pre-pandemic peak.
In a letter to the board of Taylor Wimpey, US fund manager said it is a top five shareholder in the business and has demanded the appointment of at least two new independent directors, according to Bloomberg which first reported the news.
The activities investor has also called for the creation of a new committee to advise on Taylor Wimpey’s operations.
In the letter Elliott Investment accused Taylor Wimpey of “a series of operational and strategic missteps,” which led to “persistent share-price under-performance, leaving shareholders frustrated and lacking confidence in the company.”
The fund manager said returns of over 70 per cent could be made, in the medium term, by focussing on the company’s sales prices, costs and other measures.