M&G Warns Against Undervalued UK Corporate Takeovers

By the Editorial Team · Sunday, August 9, 2026

Michael Stiasny of M&G Investments has warned that foreign buyout firms are exploiting depressed share prices to acquire undervalued London-listed companies, prompting M&G to oppose several major takeovers, including bids for easyJet and Segro. This surge in acquisitions risks depriving UK investors of long-term value and could weaken the London Stock Exchange’s market health if boards and shareholders continue accepting offers below true worth.

One of the United Kingdom’s prominent fund managers has issued a caution against the wave of foreign acquisitions targeting undervalued London-listed companies. Michael Stiasny, head of UK equities at M&G Investments, warned that buyout firms are capitalizing on depressed share prices to acquire valuable assets at prices below their long-term worth.

M&G Investments, which manages close to £400 billion in assets, has committed to opposing several high-profile takeovers, including the recent bid by Wall Street firm Apollo for budget airline easyJet. The firm also opposed the £14 billion acquisition of warehouse operator Segro by US rival Prologis. According to Stiasny, while takeovers are an important part of a functioning equity market, investors and company boards must adopt a longer-term perspective to avoid undervaluing their holdings.

“Too many UK public market transactions are happening at the wrong valuation,” Stiasny said. He emphasized that if public market investors continue to accept offers that fall short of true value, it could result in an ongoing trend of UK assets being taken private at unfavorable prices. Stiasny urged boards and shareholders to resist bids that do not reflect the long-term potential of companies, even if rejecting such offers might lead to short-term share price declines.

Market data shows an uptick in takeover activity on the London Stock Exchange (LSE), with nearly 40 bids recorded this year. The latest bid, announced last Friday, targeted oil and gas exploration company Genel Energy. Stiasny attributed the heightened deal activity to the undervaluation of UK-listed companies compared to peers on other exchanges. He noted some firms may find it challenging to reject bids amid fears of share price drops after an initial boost from offer announcements.

Richard Marwood, head of UK and European equities at Royal London Asset Management, echoed concerns about the sustainability of this takeover wave. While he anticipates continued bid activity, Marwood cautioned that the lack of sufficient initial public offerings (IPOs) risks undermining the long-term vitality of the LSE. He described the trend as potentially “sawing through the branch” the market depends on.

Some fund managers acknowledge the pressures influencing acceptance of takeover offers. Redemptions from UK equity funds remain significant, with data from Calastone revealing that £948 million exited UK funds last month. Some investors view liquidity from bids as an opportunity to redeploy capital into other promising ventures. Georgina Hamilton, a partner at Polar Capital, indicated her fund does not feel disadvantaged by current bid prices, highlighting their ability to recycle proceeds into investment positions with strong growth prospects.

The debate continues over whether the surge in foreign takeovers represents a market correction or a concerning trend of undervaluation, with key stakeholders calling for a careful balance between short-term gains and protecting the long-term interests of UK equity markets.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.