Elliott takes near 5% stake in UK office supplies group Bunzl, source says
Elliott Investment Management's Stake and Implications for Bunzl
Background of the Investment
June 15 (Reuters) - U.S.-based activist investor Elliott Investment Management has taken a roughly 5% stake in business supplies distributor Bunzl, a person familiar with the matter said, sending the British group's shares up nearly 4% on Monday.
Major Shareholders in Bunzl
The stake would put Elliott among Bunzl's biggest investors, LSEG data shows. Schroder Investment Management is Bunzl's largest shareholder with 5.13%, followed by Mawer Investment Management at 4.99% and Capital Research Global at 4.94%.
Elliott's Strategic Demands
Share Buyback Proposal
Elliott is pushing Bunzl to buy back shares worth up to 10% of its market capitalisation over the next 12 months and conduct a review focused on its North American business to lift the group's valuation, the source said, confirming an earlier report by Bloomberg News.
Bunzl's Response
"Bunzl is committed to engagement with all shareholders and is focused on creating shareholder value," a company spokesperson said in an emailed statement.
Elliott did not immediately respond to a request for comment.
Elliott's Broader UK Strategy
The move adds to Elliott's growing presence in Britain, where it holds stakes in BP and the London Stock Exchange Group, where it has pushed for buybacks and operational improvements.
Bunzl's Market Performance and Business Outlook
Share Price Reaction
Bunzl shares were up 2% by 1320 GMT, having risen as much as 3.7% to 2,632 pence earlier, valuing the group at £8.23 billion ($11.05 billion). The stock has risen by a quarter this year.
North American Business Focus
Bunzl, which supplies everything from stationery to food packaging, is attempting to turn around its North American business, which accounts for more than half of its revenue.
It has cut costs and reshaped its product mix in the region, after weak demand and execution weighed on margins.
Financial Results and Outlook
In April, Bunzl reported a 2% rise in first-quarter underlying revenue and reiterated its outlook for 2026, despite geopolitical and macroeconomic uncertainties.
Exchange Rate Information
($1 = 0.7448 pounds)
Reporting Credits
(Reporting by Anousha Sakoui in London, Ruchika Khanna, Nithyashree R B and Simone Lobo in Bengaluru; Editing by Sonia Cheema, Janane Venkatraman, Louise Heavens and Milla Nissi-Prussak)
