(Adds Taylor Wimpey response)
By Aby Jose Koilparambil and Yadarisa Shabong
Dec 10 (Reuters) - Activist investor Elliott called on
Friday for Britain's Taylor Wimpey to replace its
departing chief executive Pete Redfern with an external
candidate, saying there had been "missteps" at the FTSE 100
company over the years.
Elliott has in recent months ramped up its campaign for
changes in several London-listed companies, including energy
firm SSE, drugmaker GlaxoSmithKline and
pharmaceutical services group Clinigen.
In a letter to the Taylor Wimpey board, Elliott disclosed it
was now among the top five shareholders in Britain's
third-largest homebuilder, although it did not disclose the
exact stake it holds.
Responding to the letter, Taylor Wimpey told Reuters that
the company has not met with Elliott, adding that it has not
received any proposal from the activist investor prior to the
publication of the letter.
The company said on Wednesday that Redfern would step down
and leave once a suitable candidate had been found. Media
reports have said Redfern's exit after 14 years in the role came
after Elliott built a stake.
"A series of operational and strategic missteps has resulted
in persistent share-price underperformance, leaving (Taylor
Wimpey) shareholders frustrated and lacking confidence in the
company," Elliott said in the letter.
Elliott said Taylor Wimpey's 2018 strategy to focus on large
sites led to cost overruns and sale-price erosion, while
proceeds from an equity fundraising last year did not meet the
intended purpose of "exceptional" land buying opportunity.
The activist investor added that Taylor Wimpey's process to
find a new CEO must be "transparent and thorough" and the
company must focus on external candidates.
Shares of the London blue-chip company, which lost about 15%
of their value in 2020, are up 2% this year compared with larger
rival Barratt Development's more than 10% rise.
In August, analysts at AJ Bell attributed the
underperformance of Taylor Wimpey shares to valuation concerns
and uncertainty concerning an ongoing dispute with Britain's
competition regulator over dropping unfair rent terms.
(Reporting by Yadarisa Shabong and Aby Jose Koilparambil in
Bengaluru; Editing by Amy Caren Daniel, Alexander Smith and
Louise Heavens)