Table of Contents
Another American activist investor is attacking a British company.
Engine Capital, a New York-based hedge fund set up in 2013, is asking FTSE 100 engineer Smiths Group, founded in 1851, to explore a spin-off or sell itself out entirely.
Arnaud Ajdler, founder and portfolio manager of Engine, who teaches “value investing” at Columbia Business School, told Smiths bosses that the company is significantly undervalued “due to its conglomerate structure” and that needs to change.
Engine owns around 2 per cent of the £6bn company, which employs more than 15,000 people and is known for making airport security scanners.
Smiths (up 5.5 per cent, or 97p, to 1,862p) insisted it has “a clear focus on creating value for shareholders”, as demonstrated by two recent updates to its guidance. Meanwhile, US hedge fund Saba Capital, run by Wall Street financier Boaz Weinstein, continues to target seven UK investment funds with plans to replace their directors with allies.
Smiths contributed to the FTSE 100’s latest rise of 113.32 points, up 1.4 per cent this week to a record high of 8,505.22 ahead of the US long weekend.
Under pressure: Engine Capital calls for Smiths Group to explore a demerger or sell itself entirely
The FTSE 250, more exposed to the tough UK economy, advanced another 0.3 per cent, or 69.72 points, to 20,597.42 in anticipation of the first in a series of interest rate cuts by the Bank of England next month.
The prospect of cheaper borrowing to buoy businesses and consumers boosted more domestically focused sectors such as housebuilders, banks and retailers.
Persimmon gained 1.8 per cent, or 21.5 pence, to 1,201 pence and Associated British Foods, owner of discount fashion chain Primark, improved 2.2 per cent, or 44 pence, to 2,012 pence before a quarterly trading update next Thursday.

At the end of a busy week for company results, DFS Furniture rose 5.1 per cent, or 7p, to 145p, after estimating that profits had almost doubled in the first half of its year to 17p. million pounds sterling.
But the sofa retailer warned that profits were likely to fall in the rest of the year as budget measures push up costs.
The owner of William Hill gave gambling company shareholders new reason to rejoice by declaring that profits have come in “well above” the city’s forecasts.
Evoke, which also owns online casino groups 888 and Mr Green, rose 5.5 per cent, or 3.8 pence, to 72.5 pence after revenue in the final quarter of 2024 was up 13 percent higher than in the same period of the previous year.
Boss Per Widerstrom highlighted some “friendly” sporting results for the bookmakers, as both Manchester City and Arsenal – often heavily backed by punters to win – had a run of poor form.
The company said profits appear to have reached “the upper end” of its previous forecast of £300 million to £310 million, well above the £294 million forecast by analysts.
Spirent Communications was steady at 176.4p. Confirmation of a strong end to the year came a day after the competition watchdog said it would look into the planned £1.2bn acquisition of the telecommunications tester by US firm Keysight Technologies.
DIY INVESTMENT PLATFORMS

AJ Bell

AJ Bell
Easy investing and ready-to-use portfolios

Hargreaves Lansdown

Hargreaves Lansdown
Free Fund Trading and Investment Ideas

interactive inverter

interactive inverter
Fixed fee investing from £4.99 per month

sax

sax
Get £200 back in trading fees

Trade 212

Trade 212
Free trading and no account commission
Affiliate links: If you purchase a This is Money product you may earn a commission. These offers are chosen by our editorial team as we think they are worth highlighting. This does not affect our editorial independence.