Activist investor Elliott Management has disclosed a 5.1% stake in embattled British tourism and insurance firm Saga.
The investment comes as Saga issued a profit warning in April and began to redesign its insurance business in an effort to change its image of only catering for seniors. Last month, the firm announced that competitive discounting and Brexit uncertainty were taking a heavy toll on its tours business. The company’s shares have tumbled 65% over the last 12 months through Tuesday’s close.
A month ago, Saga CEO Lance Batchelor announced that he plans to leave the firm in January, adding to the management departures that have affected the firm over the last two years, which included its chief financial officer and the chairman.
A week ago, Elliott said it bought into France-based Altran Technologies amid a buyout bid from rival company Capgemini. The U.S. activist said it does not plan to tender its shares to the acquirer.
Shares in Saga traded up 4.5% at 8:45 a.m. British Summer Time in London Wednesday.