Rentokil shares spike 11 per cent after BT boss eyes takeover
Philip Jansen, the former chief of BT Group, is eyeing a bid to take over FTSE 100 pest control firm Rentokil Initial, according to reports.
The news sent Rentokil’s shares rocketing this morning, with their price up 11 per cent.
Jansen has begun talks with private equity houses to be installed as executive chair of the Crawley-based pest control company, The Sunday Times said.
Rentokil has been pushing into North America in recent years, buying out US peer Terminix for $8bn (£6.7bn) in 2021, which expanded its market share on the continent to 30 per cent.
However, the bid has failed to pay off. Integration problems have been rife, and the market has not rewarded Rentokil for the efforts.
The company’s share price dropped 30 per cent in October 2023 after issuing a profit warning due to softer demand than expected in North America, and has failed to climb back to previous levels in the months since.
Last month, speculation about Rentokil falling into private hands surged after the activist investment firm of notorious billionaire Nelson Peltz revealed it had taken a stake in the company.
Analysts said Peltz, who recently abandoned a campaign against Disney, was now pushing for a major shake-up of the firm and could campaign for it to swap its listing to the US.
“Given Rentokil does a large chunk of its business across the Atlantic, this could include a push to shift its primary listing to the US, which would be another blow to the prestige of London as a listing venue,” said AJ Bell investment director Russ Mould.
Fears that Jansen could list in the US have been intensified by his proposed plans to push for Rentokil to buy out more American pest control brands, The Sunday Times added.
CVC is another private equity firm thought to be looking at moving into Rentokil, though it is unclear if this would be in partnership with Jansen.