Activist investor Elliott snaps up stake in Bunzl - report

(Sharecast News) - Activist hedge fund Elliott Investment Management has snapped up a near 5% stake in British blue chip Bunzl, it was widely reported on Monday. According to Bloomberg and Reuters, among others, citing unnamed sources familiar with the matter, the holding makes the US-based investor one of Bunzl's biggest shareholders.

It is pushing for change at the packaging and business supplies giant, including a resumption of share buybacks and a strategic review of the North American business, which accounts for around half of all revenues. The Financial Times said that the review could lead to a sale of the unit, which focuses on the food service and grocery sectors.

Neither Bunzl nor Elliott have commented.

Bunzl posted a 2% jump in first-quarter underlying revenues in April and reaffirmed its full-year outlook. Last year it reported adjusted operating profits of £910m - a 4% decline year-on-year - on revenues of £11.8bn.

Bunzl is the latest British firm Elliott has targeted, with the firm already owning stakes in BP and the London Stock Exchange Group.

As at 1300 BST, shares in Bunzl were up 2% at 2,578p.