Activist investor Elliott has disclosed a stake in Saga Plc less than a month after the specialist tourism and insurance firm warned discounting was hurting its tours business.
Saga has been trying to shake off its image as only serving "old people" and had begun rebranding after a profit warning in April. The company is also looking for a new chief executive officer after Lance Batchelor announced his departure last month.
Elliott Capital Advisors have disclosed a 5.14% stake in Saga.
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"We have good and open relations with all of our shareholders and expect to be in contact with Elliott shortly," a spokeswoman for Saga said.
Small-cap Saga's shares rose as much as 8.6% following the news.
The shares, widely held by retail investors since Saga floated at 185 pence in 2014, have slumped 58% this year and are down 81% from their peak in 2016.
Hope Of A Management Shake-Up
One London-based trader said news of the stake would spur hope of a management shake-up.
Saga has already had a series of senior level departures in the last two years, including those of its chief financial officer and chairman. A source with knowledge of the matter said no further changes were planned at present.
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