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Activist Palliser Pushes Rio Tinto to Review London Listing

(Bloomberg) -- Palliser Capital UK Ltd stepped up pressure on Rio Tinto Group to unify its dual listing, requesting a review of the structure at the company’s next annual shareholder meeting.

Activist investor Palliser has been pushing Rio to unify its listing into an Australian-domiciled holding company since May. The firm argues the current dual-listed structure has seen investors miss out on $50 billion in value.

Ever since larger rival BHP Group collapsed its dual listing in 2021 — partly in response to pressure from activist Elliott Investment Management — observers have asked if Rio would follow suit. Still, Rio has waved away such proposals and pointed out that its investor base is very different. 

Its share register is much more weighted to London, with about three-quarters of its stock there. Rio Chief Executive Officer Jakob Stausholm also dismissed the idea, saying earlier this month the current structure works.

Palliser said Thursday it had submitted the resolution calling for Rio’s board to conduct an “independent, comprehensive and transparent review” on unification. 

A Rio spokesperson declined to comment.

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