Exhaust fumes filter giant Johnson Matthey PLC (LSE:JMAT) has been told it needs to take “decisive action” to improve its performance by its major shareholder.
A complete review of all the business has been requested by US conglomerate Standard Industries, which is advocating a sale of the engineer if it is in shareholders’ interests.
Standard accused Johnson Matthey’s directors of being “complacent and incapable of correcting a misguided strategy”.
The FTSE 250 group responded with a comment that it “welcomes constructive input from all shareholders”.
“The board and management team are resolute in their focus on improving JM’s (Johnson Matthey’s) share price performance and recognise the need to restore shareholder returns,” it said in a statement.
Johnson Matthey has expanded from precious metals refining into making catalytic converters for cars to filter out exhaust fumes and drugs for cancer treatments, with an acknowledged skill in platinum and associated metals such as palladium and rhodium.
In recent years, it has attempted to replicate its success with catalytic converters in greener areas with limited success.
Standard Industries wants to sell the hydrogen technologies arm which saw interim sales tumble by almost 50%.
“We strongly urge the board to hire advisers and publicly launch a formal strategic review process exploring all potential paths for maximising shareholder value, including, but not limited to, a sale of part or all of the company,” said Standard.
Shares in the company jumped 3.6% to 1,401p on Monday, but have shed more than 50% of their value over the past five years.