Activist investor Cevian Capital has disclosed a stake in Smith & Nephew, sending shares in the London-listed manufacturer of medical devices up more than 7 per cent. Stockholm-based Cevian had a 5 per cent stake in Smith & Nephew as of July 2, the maker of joint implants and surgical devices said on Thursday. Smith & Nephew has been hit by supply issues in recent years, while it has also suffered from high executive turnover, with three chief executives in five years.
Before, they had fallen almost a fifth over the past 12 months. Cevian has previously taken long-term positions in companies including UBS, Vodafone and Aviva, and is expected to adopt a similarly long-term approach to its investment in Smith & Nephew. It manages assets of more than €14bn. The Swedish-based activist has typically taken positions in businesses it believes have complicated organisational structures that it has sought to simplify.