An activist investor has called for Rio Tinto PLC to give up its primary London quote and therefore also its FTSE 100 listing, like rival BHP did three years ago.
London-based Palliser Capital, which has built up less than a 1% stake, has argued Rio’s dual Anglo-Aussie corporate structure made it difficult to pull off big acquisitions, the Financial Times reported.
It reckons Rio is trading at a $27 billion discount, or so it told a Sohn Hong Kong investment conference on Thursday.
Palliser’s chief investment officer James Smith, who is reported to have been in contact with management about its dual listing, said he believed there was upside of “nearly 40 per cent” in Rio’s shares.