Activist Investor Palliser Builds Near 5% Stake in WH Smith

Activist investor Palliser Capital has acquired nearly a 5% stake in WH Smith, the British travel retailer, aiming to boost the company's underperforming share price and enhance shareholder returns. Following WH Smith's sale of its UK high street business to focus on its travel retail division, Palliser sees the company as a high-quality, pure-play travel retailer with strong growth potential, despite its shares trading near COVID-19 levels. Palliser plans to engage with WH Smith's management, led by CEO Carl Cowling, on reviewing leverage targets, capital allocation policies, investor communication, and executive incentives to better align with shareholder interests. The stake, valued at about £65 million, reflects Palliser's conviction in WH Smith's fundamentals and the structurally advantaged growth markets it operates in, particularly as passenger numbers in air travel are expected to increase significantly. WH Smith operates over 1,200 stores across 32 countries, and its share price movement contrasts with competitor SSP, which has also faced activist interest. Causeway Capital Management remains WH Smith's largest shareholder with a 12.2% stake.