Activist investor Palliser takes minor stake in UK's Autotrader, source says (updated)
07/05/2026 11:31
Changes sourcing, adds Palliser declining to comment in paragraph 6, graphic, shares, valuation and context throughout By Prerna Bedi May 7 (Reuters) - Activist investor Palliser Capital has built up to a 2% stake in Britain's Autotrader Group AUTOA.L, a source familiar with the matter said on Thursday, at a time when the automotive marketplace is under pressure from artificial intelligence and regulatory intervention. Autotrader shares were up 4.2% at 521.2 pence per share at 0921 GMT, outperforming the benchmark FTSE-100 .FTSE index, which was down 0.7%. The fund manager's stake is likely to be between 1% and 2%, the source told Reuters. It would be worth up to 81.2 million pounds ($110.6 million), based on Reuters calculations using Autotrader's previous closing stock price. Palliser has previously pushed for changes at several big firms, from Japan's SMC Corp 6273.T to deliver shareholder returns, to an unsuccessful campaign last year at Rio Tinto RIO.L asking the miner to reconsider its dual listing. Sky News, which first reported on Palliser's stake purchase, said that while the investor was supportive of the company, it is pushing the group to return about 700 million pounds to shareholders via buybacks, dividends and tender offers. London-based Palliser declined to comment, while Autotrader did not immediately respond to a Reuters request for comment on the stake-buy. Autotrader connects buyers and sellers of new and used vehicles online, providing advertising, data, and transaction services. As AI capability expands, there is growing concern that global advertising and data companies' business models would be most vulnerable to disruption. In March, Britain's competition regulator had launched investigations into five companies, including Autotrader, as part of its crackdown on fake reviews and misleading online ratings. Autotrader shares have lost nearly 42% of their value in the past 12 months. At their peak in May 2025, they were worth 920 pence each. ($1 = 0.7342 pounds) UK's Autotrader underperforms FTSE 100 https://reut.rs/4ncbFLc (Reporting by Prerna Bedi in Bengaluru; Writing by Pushkala Aripaka; Editing by Mrigank Dhaniwala and Harikrishnan Nair) ((Prerna.Bedi@thomsonreuters.com; +91 98052 24616;))