Investor activism is poised to enter a “golden age” across Europe next year, while low valuations and heightened environmental, social and corporate governance concerns mean that British companies are the most vulnerable targets, according to a new report.
In the next 12 months, 148 European companies are at risk of being targeted by activist investors, according to professional services company Alvarez & Marsal. This marks a 10 per cent increase from its last update in April 2021.
Britain remains the most attractive country for activists — which buy stakes in a company with the aim of influencing its management — with 36 per cent of the European companies identified as “at risk” based in the UK.
“The relative underperformance of UK corporates compared to their European peers is helping to make the UK a target-rich environment for activist investors,” said Malcolm McKenzie, managing director and head of European corporate transformation services at Alvarez & Marsal.
Brexit, the pandemic and supply chain disruptions have contributed to widening the gap…
