ValueAct Raises Rolls-Royce Stake After Share Price Collapse

  • Activist investor increases holdings to 10.01 percent
  • Rolls-Royce says `in regular contact' with hedge fund

ValueAct Capital Management has increased its stake in Rolls-Royce Holdings Plc above 10 percent, a week after the aircraft-engine maker suffered the biggest drop in its stock price in 15 years because of a revised profit forecast.

The activist hedge fund, which first passed the 5 percent stake threshold requiring the company to disclose the holdings on July 31, has increased its position to 10.01 percent, Rolls-Royce said in a statement Thursday. The U.K. manufacturer was up as much as 1.6 percent after the announcement and was trading up 1.5 percent at 551 pence as of 12:33 p.m. in London.

“We are in regular contact with ValueAct, as we are with all our major shareholders. We have a common interest in returning Rolls-Royce to profitable growth,” a Rolls spokesman said in an e-mail.

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