Activist investor revives Auction Technology Group campaign
The notorious activist investor behind a failed bid to buy Auction Technology Group has revived its campaign against the FTSE 250 firm’s management, calling for a new chair and a strategic review that could result in a sale.
Fitzwalter Capital, which is Auction Technology’s (ATG) largest shareholder, called on investors to oust incumbent chair Scott Forbes who has overseen “five years of value destruction” at the online auction platform, it said in a statement on Monday.
Under the proposal, Fitzwalter’s nominee to replace Forde, Richard Campbell-Breeden, would launch a strategic review exploring a buyback programme or a sale. The calls come just six months after the investor abandoned an attempt to buy the FTSE 250 constituent off the stock market. Fitzwalter has called a general meeting where investors will vote on the plans.
The activist investor, which backs a combination of private and publicly listed firms, had nearly a dozen bids for ATG rebuffed during a hostile takeover campaign in which it accused its portfolio company’s management of “disastrous oversight”. Many of the bids were made place behind closed doors before ATG disclosed the offers to investors, arguing the 33 per cent premium implied in Fitzwalter’s final bid “fundamentally undervalued” the company.
ATG said it was “disappointed” at Fitzwalter’s latest broadside, branding it an “unnecessary and unwarranted distraction” from the delivery of its strategy.
“The board believes this does not reflect the significant progress and momentum in the business, with the share price having risen 72 per cent since the start of the year.”
Auction Technology’s shares remain in doldrums
ATG’s shares have shed more than 65 per cent of their value in the past five years, amid a barrage of structural headwinds and a struggle to integrate the loss-making US rival Chairish which it acquired in 2025.
But so far this year, shares have rallied more two thirds in a sign of a recovery.
In the group’s update on Monday, Fitzwalter partner Andrew Gray accused incumbent chair Forbes of overseeing “five years of value destruction”.
“Replacing him clears the way for an independent strategic review, including a potential sale. Most importantly, shareholders will have the final say,” he added.
As part of its latest salvo, Fitzwalter is angling for the strategic review to explore both a buyback programme or for directors to offload the company to a new owner. It added it was not committed to a sale should it not receive any offers that deliver “appropriate value”.
It also vowed not to bid for the company should the review lead to a sale process, and promised to throw its weight behind any bid the board recommends to shareholders.
Cambell-Breeden, a former investment banker at Goldman Sachs, said he was independent of Fitzwalter had “not prejudged the outcome of any strategic review”.
“What matters is that the review is rigorous, open-minded and focused on delivering the best outcome for ATG and all its shareholders,” he added.