(News Bulletin 247) – The British company could be bought by the former boss of the telecoms operator BT, reported the Sunday Times. Rentokil’s share price is rising sharply on the London Stock Exchange.

A company listed in London since 1969, Rentokil is at the top of the bill this Monday. This British company, founded almost a hundred years ago, specializes in pest control, with a strong presence in North America, a region that represents around 60% of its revenues. It also offers hygiene services for businesses, such as soap, towels, hand dryers.

Its stock market performance has been difficult recently, due in particular to lower-than-expected growth in the second half of 2023 in North America, of just 2%.

But on Monday, its share price recovered, rising 9.8% to £492.20 by late afternoon. This increase is linked to market speculation about a potential takeover following the Sunday Times reports.

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The strategy in question

The British media reported on Sunday that the former chief executive of telecoms operator BT Group, Philip Jansen, was considering buying Rentokil by partnering with private equity funds, without citing his sources.

Contacted by Bloomberg, both Rentokil and Philip Jansen declined to comment on the information.

The agency reported in June that activist investor Nelson Peltz, known in particular for having crossed swords with Disney, had acquired a “significant” stake in Rentokil, which had already propelled the shares of the pest control and hygiene specialist.

“This suggests that investors are increasingly questioning the group’s strategy, given the weak performance of Rentokil, which is facing a difficult integration of the Terminix acquisition ($6.7 billion in 2021), with its share price down 25% since the third quarter of 2023 and a discount of more than 50% compared to the American company Rollins,” UBS wrote in a note written on Monday. The bank maintained its “neutral” advice on the stock on Monday.