Rolls-Royce has entered into talks with an American activist investor seeking a seat on the struggling engineer’s board.
The group, which cut its dividend for the first time in 23 years last week, said it had not yet decided whether to give ValueAct, a San Francisco hedge fund, a place on its board. The activist investor secured a seat on the Microsoft board three years ago with a stake of only 0.8 per cent.
ValueAct is the largest shareholder in Rolls-Royce, holding 10 per cent. A spokesman for Rolls-Royce said: “We’re engaged in constructive discussions with ValueAct and no decision has yet been taken.”
The talks come after Rolls-Royce’s annual profits fell by 12 per cent to £1.4 billion. The company had warned about its