Rolls-Royce reviewing request from activist investor to join board

Rolls-Royce is reviewing a request by activist investor ValueAct to take a seat on the engine-maker's board.

The American investment company, which has accumulated a 10% stake in the bluechip, wants Rolls-Royce executives to focus on enhancing the performance of its main civil aircraft engine operation.

One major investor told the Sunday Telegraph that it thinks ValueAct "are more serious that some activist investors, but their interest is mainly in extracting what the name would imply: value".

The investor continued: "Rolls is one of the few remaining serious British industrial companies, and one would hope it had a future beyond producing cash flow for the next few years.

"In the long run, we want the business to be re-invested in."

ValueAct, which says on its website that it "concentrates on acquiring significant ownership stakes in companies it believes are fundamentally undervalued", did not comment.

Rolls-Royce said that talks on the matter had so far had been "constructive".