Air Liquide rises as Elliott reportedly builds stake, pushes for higher margins (updated)

Air Liquide

01/09/2026 12:04

Adds context on media report in paragraph 4.
Shares set for biggest daily gain in six months
Elliott has built stake urging management to boost profits, sources say
Analysts expect buyback announcement in October
Sept 1 (Reuters) - Shares in Air Liquide AIRP.PA rose as much as 4.2% on Tuesday after sources familiar with the matter said activist investor Elliott Investment Management had built a stake in the French industrial gases company.
Reuters reported on Monday that Elliott had been engaging with the €108 billion ($125 billion) company for months, pushing for changes aimed at making it more competitive.
Elliott's stake in Air Liquide could not immediately be determined. The hedge fund has urged management to improve margins, the sources said.
The Financial Times was the first to report that Elliott had built a stake in the French firm. Elliott declined to comment when contacted by Reuters, while Air Liquide did not respond to a request for comment.
Paris-based Air Liquide, which supplies gases including oxygen, nitrogen and hydrogen to factories and hospitals, has trailed rival Linde's LIN.O profitability for years, although analysts see room for improvement.
Linde's operating margin stood at about 30% at mid-2026, compared with roughly 21% for Air Liquide, LSEG data showed.
In a note to investors, J.P. Morgan analysts said one of the main drivers of the margin gap against Linde was Air Liquide's lower sales per employee, suggesting scope for further efficiency measures.
Elliott, among the world's biggest activist investors, has in recent years pushed for changes at companies including London Stock Exchange Group and electronic design automation software maker Synopsys.
The fund also targeted French spirits group Pernod Ricard in 2018, urging the maker of Martell cognac and Absolut vodka to boost profit margins.
Analysts at Bernstein said Air Liquide was not an obvious candidate for a traditional activist campaign. 
However, they said Elliott's involvement could increase pressure on management and that a share buyback announcement at the company's scheduled capital markets day in October could act as a near-term catalyst for the stock.
Air Liquide shares, which have gained 20% this year, were up around 3% by 1102 GMT and on track for their biggest one-day gain in six months.
($1 = 0.8626 euros)

(Reporting by Gianluca Lo Nostro; Editing by Milla Nissi-Prussak)
((gianluca.lonostro@thomsonreuters.com;))