Rentokil surges as Nelson Peltz's Trian said to have taken 'significant' stake

dl rentokil initial hygiene pest control service ftse 100 min — Rentokil InitialCompany photo / Rentokil Initial

Rentokil surged to the top of the FTSE 100 on Wednesday following reports that activist investor Nelson Peltz’s Trian Fund Management has taken a "significant" stake in the pest control company.

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According to sources cited by Bloomberg, the investment firm is now among the top 10 shareholders in Rentokil, which owns Terminix in the US.

Meanwhile, CNBC said a spokesperson for Trian said it was looking to engage with Rentokil’s leadership on "ideas and initiatives to improve shareholder value".

At 0835 BST, the shares were up 13.3% at 470.60p.

Russ Mould, investment director at AJ Bell, said: "Peltz is likely to pursue a big shake-up of a company which has struggled in comparison with its US peer Rollins, both in share price terms and financial performance.

"Given Rentokil does a large chunk of its business across the Atlantic this could include a push to shift its primary listing to the US, which would be another blow to the prestige of London as a listing venue. Trian pursued a similar approach with Ferguson which made the move in 2022."