LONDON, March 25 (Reuters) - British money manager Legal & General Investment Management said on Thursday that it is unlikely to participate in food delivery firm Deliveroo’s upcoming initial public offering (IPO) via its active or passive funds.
Deliveroo is in the final stages of what could be Britain’s biggest stock market debut in nearly a decade, setting a price range on Monday that values it at up to $12 billion.
LGIM said in a statement to Reuters via email that it has strongly recommended to Britain’s Financial Conduct Authority that companies with unequal voting rights structures should not be included in the FTSE indices.
Deliveroo is planning to issue preference shares to its founder and chief executive Will Shu that would give him more than 50% of shareholder voting rights.
“It is important to protect minority and end-investors against potential poor management behaviour, that could lead to value destruction and avoidable investor loss,” LGIM said. (Reporting by Abhinav Ramnarayan Editing by Rachel Armstrong)