(Adds details from Egerton Capital, background)
LONDON, Nov 9 (Reuters) - Activist investor TCI Fund Management on Thursday called for a formal shareholder meeting to vote on removing London Stock Exchange Chairman Donald Brydon, saying the company had not explained why Chief Executive Xavier Rolet was leaving.
TCI, founded by British billionaire Chris Hohn, said in a letter to the LSE that it also wanted the company to terminate its search for a new CEO and, if Rolet accepts, extend his tenure until 2021.
LSE said on Oct 19 that Rolet is to step down by the end of 2018, just under a decade after he took charge. Under Rolet’s tenure LSE’s share price has risen from around 6 pounds ($7.89)per share to 37 pounds.
The exchange must now arrange an extraordinary shareholder meeting within three weeks or TCI will conduct its own meeting within three months at the company’s expense, the hedge fund said.
TCI first raised its complaints about Rolet’s planned exit in a letter to the LSE last Friday, in which it said Brydon and the board were trying to force the CEO out, an allegation denied by the exchange on Monday.
A subsequent letter to the LSE on Tuesday demanded the company let Rolet speak about his reasons for leaving and reiterated a threat to call the EGM if the company did not act.
TCI holds just over a five percent stake in LSE, enough for it to be able to call such a meeting.
A source close to LSE shareholder Egerton Capital said the hedge fund would back TCI in a resolution for Rolet to remain at the company.
A spokesman for the LSE declined to comment when contacted by Reuters. ($1 = 0.7607 pounds) (Reporting by Maiya Keidan and Simon Jessop,; editing by Rachel Armstrong)