Power struggle grips the Stock Exchange
Top investor in battle with board over the future of French boss
A CLASH between three of the City’s biggest names erupted again last night as a top investor stepped up a campaign against the London Stock Exchange.
Sir Chris Hohn, founder of The Children’s Investment Fund, sent an explosive letter to LSE chairman Donald Brydon demanding he explain why chief executive Xavier Rolet is leaving.
Hohn, 51, wants Rolet to stay and believes he has been forced out by Brydon. He has used his 5pc holding in LSE to force it to call a shareholder meeting before Christmas to vote on whether Brydon himself should be sacked – and Rolet reinstalled.
In yesterday’s letter, Hohn listed questions he said must be answered and told the chairman: ‘You have failed to provide transparency to shareholders.’
It sets the stage for an epic battle of wills between the trio.
David Buik of stockbroker Panmure Gordon said: ‘Brydon and others have clearly clashed with Rolet, who’s a very strong personality and used to getting his own way. Hohn has been a nightmare for many over the years, and they’re set for a showdown.’
Rolet has run the LSE for more than eight years, transforming it from a business worth £800m to a £ 14bn titan. But the French former investment banker’s star fell after his failed attempt to sell the company to German rival Deutsche Boerse this year.
Rolet said last month that he intended to quit but refused to be drawn on the reasons why.
The 58-year- old – who owns a chateau with 74 acres of vineyards in Provence and hives housing 50,000 bees – is popular with many investors but some insiders see him as aloof and arrogant. Hohn’s previous victories include fending off a 2005 bid by Deutsche Boerse to buy the LSE.
He also agitated for the breakup of toxic Dutch lender ABN Amro in 2007. It ended with Royal Bank of Scotland snapping up the business in a disastrous deal which almost destroyed RBS and the British economy.
Hohn, who described himself as an ‘unbelievable money-maker’ during an acrimonious 2014 divorce case against ex- wife Jamie Cooper-Hohn, is concerned Rolet has been forced to leave and believes he has been gagged.
Brydon told Hohn: ‘The board is committed to providing all the information necessary to shareholders to enable them to make informed decisions at the general meeting you have requested.’
With such large personalities involved, few have a clear sense of how the scrap will play out.