(Reuters) Qatar's sovereign wealth fund has thrown its support behind the embattled chairman of the London Stock Exchange Group, who is facing calls from an activist shareholder to be removed, a source familiar with the matter has said.
British hedge fund firm TCI Fund Management, a 5% shareholder in the LSE, is pushing to oust chairman Donald Brydon over his handling of the succession of Xavier Rolet, the group's former chief executive who resigned last month.
A shareholder meeting has been called by the LSE board for 19 December to decide on Brydon's future
Change not beneficial
Qatar Investment Authority (QIA), the second-largest shareholder in the LSE with a 10.37% stake, according to Thomson Reuters Eikon data, disagrees that the chairman should be ousted, a source familiar with the matter told Reuters.
"QIA’s view is it would not be beneficial to have an immediate change in the chairman," said the source, who asked not to be identified because of the sensitivity of the matter.
The LSE declined to comment on Tuesday, but said last month that the board unanimously recommended that shareholders reject the resolution, saying ditching Brydon risked significantly damaging the company.