Hedge Funds

Hedge fund manager Hohn won't attend LSE vote - source

LONDON (Reuters) - British hedge fund manager Christopher Hohn will not attend a vote on the motion brought by his firm to oust London Stock Exchange LSE.L chairman Donald Brydon, a source close to the firm told Reuters.

FILE PHOTO: Pedestrians leave and enter the London Stock Exchange in London, Britain August 15, 2017. REUTERS/Neil Hall

Activist hedge fund manager TCI Fund Management, run by Hohn, is unhappy with Brydon’s handling of the succession of Xavier Rolet, the LSE’s former chief executive.

TCI is expected to lose the vote at the general shareholder meeting being held in London at 1200 GMT on Tuesday after a series of heavyweight investors came out in favour of Brydon.

Shareholder Standard Life Aberdeen SLA.L will vote against the motion, a source familiar with the matter said on Monday.

Standard Life Aberdeen joins large LSE shareholders Qatar Investment Authority, BlackRock and Aviva Investors in saying they will vote against the motion.

TCI does not expect to pass the resolution to oust Brydon at the shareholder meeting and will send a representative, the source close to the firm told Reuters.

Shareholder advisory firms Glass Lewis and Institutional Shareholder Services have recommended shareholders vote against removing Brydon.

But rival advisory firm PIRC has recommended shareholders abstain, describing the LSE board’s handling of the succession as a “major failure of board leadership”.

Standard Life Aberdeen is a top-100 investor in the LSE with a 0.07 percent stake, according to Thomson Reuters Eikon.

A majority of votes cast at the meeting would be needed for TCI’s resolution to pass.

The LSE has already said Brydon will step down in 2019 after helping to appoint Rolet’s successor.

Reporting by Carolyn Cohn and Maiya Keidan, editing by Louise Heavens