IR Monitor – 9 July 2025

In this week’s newsletter:

• The Global IR Revolution: the book launch here at FTI last week was attended by almost 100 Investor Relations Officers. Let us know if you missed it and would like a copy.
• The golden share makes a dubious comeback in the opinion of Bloomberg
• The future of sell side research debated at the IR Society
• Activist investors slow pace of demands amid global uncertainties –Reuters
• Is the London stock market getting leakier? The FT investigates
• And finally … Fund managers made ‘ridiculously extravagant claims’ on ESG

This week’s news

‘The Global IR Revolution’ book launch at FTI London

Last Thursday, readers of the IR monitor joined us at FTI for a networking breakfast to celebrate the launch of Oskar Yasar’s book, The Global Investor Relations Revolution. The book is the first time IROs and advisors from all corners of the world and from key national IR associations have come together as a global industry to steer a future path together. Breakfast was followed by a panel discussion with Nick Ashworth, Head of Investor Relations at Reckitt, and Angela Broad, Head of Investor Relations at National Grid. It was great to connect with so many industry leaders. See here to find out Matthew O’Keeffe’s key takeaways from the event.    

Golden shares make a comeback

Golden shares, which were once associated with the 1980s era of European privatisations, are making a controversial return in UK and US dealmaking. These shares give governments disproportionate control over companies without actually having to use their own capital. Unlike previously, where golden shares were used as tools to block foreign acquisitions of strategic assets, Chris Hughes at Bloomberg Opinion says they now have enabled takeovers by enforcing certain conditions on the acquiring party. For example, the UK Government imposed a golden share in the sale of Royal Mail to Czech billionaire Daniel Kretinsky to maintain its UK headquarters and tax residency and President Trump’s demand for a golden share as part of Nippon Steel’s takeover of US Steel includes a commitment to invest $11 billion by 2028. These tactics create uncertainty amongst investors, reduce takeover premiums and potentially even stop mergers altogether. Shareholders bear the cost of reduced operational flexibility. Critics argue that enforceable contracts rather than political shareholdings could achieve the same outcomes but with better predictability.

The future of sell-side research

Sell-side research has changed significantly over the last five to 10 years, particularly following MiFID II’s introduction in Europe. With increased pressure to demonstrate value, sell-side analysts now operate in a more commercial and metrics-driven environment – output is tracked in granular detail, from research note readership statistics, click-through rates and client meetings – leading to shorter-form content designed to better engage the buy-side. The focus has shifted towards hedge funds and high-fee clients, with more frequent recommendation changes increasingly used to boost visibility. In sectors such as consumer goods, hedge funds sometimes even pay to access other forms of insight, such as third-party scanner or credit card data, rather than waiting for sell-side research to be published, therefore reducing the value of analyst notes. Corporates are also impacted – a company with a £20 billion market cap might now have 18-20 analysts covering it, compared to 23-24 just five years ago. According to the IR Society, the quality of research has also been affected. Deep dive thematic reports still exist but ‘maintenance’ research has declined, creating gaps in coverage. Perhaps the silver lining is that in-house IR teams are now more involved in managing consensus and shaping perception. Another recent change is the increased use of paid-for research, which even large-caps are using nowadays to remain visible to the buy-side.  

Decline of activist investors in light of global uncertainties – Reuters

Data compiled by Barclays has revealed that the number of activist investor demands aimed at increasing a company’s share price fell 12% to 129 campaigns during the first six months of 2025. However Reuters reveals that for the Q1 2025, campaigns rose by 17%, with most of the demands for change directed at US corporations, before dropping drastically by 27% in Q2. In Q1, Elliott Investment Management, a well-known activist, deployed $8.8 billion in assets and pressed for changes at six companies, such as BP and Hewlett Packard Enterprise. Jim Rossman, Global Head of Shareholder Advisory at Barclays, stated that the fall was “shaped by mixed economic signals, fears about wars and geopolitical tensions and the instability created by future tariffs and trade wars.” As Rossman suggests, the fall can be primarily attributed to President Trump’s constant shifting stance on tariffs which led to stock markets fluctuating. The slowdown comes after a record number of corporate agitators made demands last year and urged companies to focus on improving strategies and reviewing their appointed executives. This slowdown may reflect a broader shift in pace by activists that could continue throughout the year. 

Unusual trading activity at an all time high for UK-listed M&A deals – FT

The UK’s FCA has raised concerns over an increase in media leaks and unusual trading activity ahead of takeover announcements. In the 14 months to May 2025, 38% of UK-listed M&A deals were leaked to the media before official disclosure, significantly higher than the global average of 31% for deals over $1 billion in 2024. These leaks have sparked concern that London’s market integrity is getting weaker. The FCA suspects that many of the leaks are strategic, designed to influence negotiations by encouraging rival bids or deterring unwanted acquirers. The FCA has also seen a rise in unusual trading ahead of such announcements. In 2024, 38% of UK takeovers saw unusual price movements in the two days before the disclosure, which is up from a five-year average of 32%. In response, the FCA has increased surveillance and ordered senior banking staff to address the issue with the Takeover Panel. Since 2020, it has opened 33 market abuse investigations, three of which were launched in 2025. Although the FCA has acknowledged that its data had “limitations as a measure of market cleanliness,” it stressed the importance of market fairness & investor trust.  

And finally… extravagant claims on ESG

Earlier this month, at City Week, a conference focused on international finance took place in London. At the event, City AM reports that Sir Douglas Flint, Head of Asset Management firm Aberdeen, suggested fund managers have made a “huge mistake” with their “ridiculously extravagant claims” on ESG investing and “saving the world”. This remark follows on from a broader pushback against ESG investing which has been spearheaded by the return of President Donald Trump. Morningstar data shows up to £6.2 billion was withdrawn from sustainable funds in Q1 2025 alone. Despite the growing trend amongst corporates, the UK Government is pushing on for a greener transition within the financial services industry. At the conference, City Minister Emma Reynolds also boasted, “The UK has a world leading financial and related professional services ecosystem and the research that is needed to integrate sustainable finance.”