Qatari investors back embattled LSE chairman Brydon

The London Stock Exchange Group chairman has gained additional backing against activist investor plans to oust him at an EGM next week over the abrupt exit of LSE chief executive Xavier Rolet.

It is understood that the Qatar Investment Authority (QIA) has indicated its support of Donald Brydon following accusations by activist investor the Children’s Investment Fund Management (TCI) that he had railroaded Rolet out.

QIA, which owns more than 10 per cent of LSE, is understood to believe the group would not benefit from the immediate departure of Brydon given that the search for the CEO’S replacement is underway, said City sources.

Activist investor TCI, which holds a stake of more than 5 per cent in the exchange, had been calling for Rolet to stay on until 2021 before he stepped down at the end of November.

The TCI has pushed for Brydon’s immediate dismissal amid claims that he got rid of a “world class CEO without providing any good reasons”.

Institutional Shareholder Services (ISS) last week also recommended that investors oppose the motion to oust the chairman. It said support for the removal of Brydon would equate to “a strong judgement call” against the whole board, and that a simultaneous search for a chairman and CEO “would be far from ideal”.

During Rolet’s eight-year tenure, the LSE’S value soared from £800 million to nearly £14 billion. 0 Xavier Rolet stepped down at the end of November