Sir Christopher Hohn of The Children’s Investment Fund leaves Portcullis House on January 27, 2009 in London.Peter Macdiarmid/Getty Images
- Hedge fund TCI Fund, which owns 5% of London Stock Exchange, believes CEO Xavier Rolet is being forced out by the board.
- Rolet left “with immediate effect” on Wednesday due to “unwelcome publicity.”
- TCI Fund still wants to call a general meeting of shareholders where the board will be asked questions about the reasons for Rolet’s departure.
LONDON — The investment group battling the London Stock Exchange’s board is continuing its fight despite the company’s efforts to draw a line under the fight.
The Children’s Investment (TCI) Fund had accused the LSE board of forcing out CEO Xavier Rolet and called for Rolet to remain in the role and chairman Donald Brydon to leave instead.
The hedge fund, which owns 5% of LSE Group, claims Brydon and the board are forcing Rolet out with the threat of reputational damage from an alleged dossier and says that the board are using confidentiality agreements to prevent proper scrutiny of their actions. TCI Fund claims there is a “major corporate governance problem” at the company.
LSE announced on Wednesday that Rolet’s departure was being accelerated by a year and he was leaving “with immediate effect” as a result of what Rolet called “unwelcome publicity, which has not been helpful to the Company.” Brydon also announced that he would not seek re-election as chairman.
LSE called for TCI Fund to withdraw its call for a general shareholder meeting at which investors would be asked to vote on calling off the search for a new CEO and keeping Rolet in place.
TCI Fund CEO Sir Christopher Hohn said in a letter sent to the LSE board on Thursday and seen by Business Insider that he will not withdraw its request for a general meeting. But he said he would withdraw the request for a vote on keeping Rolet in place and ending the search for a new CEO.
Hohn wants the LSE board to answer questions from shareholders on the specific reasons for Rolet’s departure, its succession planning arrangements, and whether alternatives to Rolet’s departure were discussed.
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