Activist investor Palliser takes minor stake in UK's Autotrader, source says
Palliser Capital's Investment and Impact on Autotrader
By Prerna Bedi
Palliser Capital Acquires Stake
May 7 (Reuters) - Activist investor Palliser Capital has built up to a 2% stake in Britain's Autotrader Group, a source familiar with the matter said on Thursday, at a time when the automotive marketplace is under pressure from artificial intelligence and regulatory intervention.
Market Reaction
Autotrader shares were up 4.2% at 521.2 pence per share at 0921 GMT, outperforming the benchmark FTSE-100 index, which was down 0.7%.
Stake Details and Valuation
The fund manager's stake is likely to be between 1% and 2%, the source told Reuters. It would be worth up to 81.2 million pounds ($110.6 million), based on Reuters calculations using Autotrader's previous closing stock price.
Palliser's Activist Track Record
Palliser has previously pushed for changes at several big firms, from Japan's SMC Corp to deliver shareholder returns, to an unsuccessful campaign last year at Rio Tinto asking the miner to reconsider its dual listing.
Current Engagement with Autotrader
Sky News, which first reported on Palliser's stake purchase, said that while the investor was supportive of the company, it is pushing the group to return about 700 million pounds to shareholders via buybacks, dividends and tender offers.
Company and Investor Responses
London-based Palliser declined to comment, while Autotrader did not immediately respond to a Reuters request for comment on the stake-buy.
Autotrader's Business and Market Challenges
Autotrader connects buyers and sellers of new and used vehicles online, providing advertising, data, and transaction services.
AI and Regulatory Pressures
As AI capability expands, there is growing concern that global advertising and data companies' business models would be most vulnerable to disruption.
Regulatory Investigations
In March, Britain's competition regulator had launched investigations into five companies, including Autotrader, as part of its crackdown on fake reviews and misleading online ratings.
Stock Performance
Autotrader shares have lost nearly 42% of their value in the past 12 months. At their peak in May 2025, they were worth 920 pence each.
Currency Information
($1 = 0.7342 pounds)
Reporting Credits
(Reporting by Prerna Bedi in Bengaluru; Writing by Pushkala Aripaka; Editing by Mrigank Dhaniwala and Harikrishnan Nair)
