By Rhiannon Hoyle


Activist investor Palliser Capital is calling for an independent review of Rio Tinto's dual listing in London and Sydney, insisting it makes more sense for the mining giant to unify its corporate structure in Australia.

In a letter to Rio Tinto's board on Wednesday, the U.K.-based hedge fund said Rio Tinto's dual-listed structure "has proved to be an unmitigated failure for shareholders and requires urgent unification into a single Australian-domiciled holding company."

The miner's chief executive, Jakob Stausholm, in July said Rio Tinto wouldn't scrap its London listing following a call two months earlier by Palliser to do so. Stausholm said then that the company's own review concluded changing the structure would destroy value for shareholders.

Palliser said it rejects that view. "Based on our extensive analysis, we believe that this readily actionable step would resolve the value destructive inefficiencies of the outdated DLC structure and present a path to $28 billion (27%) upside in the near term for PLC shareholders and further upside for the combined group over the medium term," it said in Wednesday's letter.


Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com


(END) Dow Jones Newswires

12-04-24 0214ET