Richard Buxton has offloaded his shares in Rolls-Royce as speculation mounts that the troubled engineering firm is being targeted for a takeover.
A spokesperson for Old Mutual Global Investors confirmed chief executive Buxton sold his position – which was less than 3 per cent – last month.
Buxton told the Sunday Telegraph he had ended his long-standing investment in Rolls-Royce due to the lack of clarity and guidance accompanying the firm’s fifth profit warning in under two years.
Buxton said: “It was the fact that we thought they’d trash forecasts for 2016 but then give some guidance for 2017, 2018 and beyond, and they didn’t. They abandoned the guidance, and frankly the suspicion is that they genuinely don’t know.”
Fellow star manager Neil Woodford also recently revealed he sold his 2.3 per cent position in Rolls-Royce on the back of the latest alert, saying he had lost confidence in the company’s business model.
Buxton’s share sale is the latest headache to hit Rolls-Royce. Last month US activist investor ValueAct increased its stake to over 10 per cent, making it the largest investor in Rolls-Royce, and stated its intent for a seat on the board.