(Bloomberg) — Legal & General Group Plc’s investment arm will vote against certain senior appointments at FTSE 100 and S&P 500 companies if they fail to include ethnic minorities on their board.

Loading...

Load Error

The asset manager wants to see at least one Black, Asian or other ethnic minority on the board at major U.K. and U.S. firms by January 2022, according to the newsletter from Legal & General Investment Management. If there isn’t any such representation, L&G will vote against appointments to chair the board and nomination committee.

“The horrifying killing of George Floyd and so many others has led many institutional investors to think much more seriously about structural racism and inequality,” LGIM wrote. “We believe asset managers must go further. Now is the time for action.”

As the U.K.’s biggest money manager with around 1.2 trillion pounds ($1.6 trillion) of assets, Legal & General’s warnings carry some heft. The firm owns stakes in many of the biggest U.K. and U.S. firms and has previously vowed to vote against companies that lacked women on boards.



graphical user interface: Boardroom Bias


© Bloomberg
Boardroom Bias

Floyd’s death prompted collective demands for action from the financial world, with Morgan Stanley and Wells Fargo & Co. vowing to elevate Black executives. Goldman Sachs Group Inc. has required more bias training; JPMorgan Chase & Co. has expanded its mentoring programs; and Bank of America Corp. has pledged money to fight inequality.

The L&G letter was first reported by The Times.

For more articles like this, please visit us at bloomberg.com

©2020 Bloomberg L.P.

Continue Reading

Source Article

(Bloomberg) — Italy’s Nexi SpA and SIA SpA are set to announce their merger after their boards meet Sunday to approve a deal to create one of Europe’s biggest payment providers, people familiar with the matter said.



a sign on the side of a train station: A pedestrian passes the Nexi SpA headquarters in Milan, Italy, on Monday, April 15, 2019. The initial public offering of payment-service company Nexi raised 2.01 billion euros ($2.3 billion), making it the biggest listing in Europe so far this year and the third major IPO of a payment-processing institution in the region in less than a year.


© Bloomberg
A pedestrian passes the Nexi SpA headquarters in Milan, Italy, on Monday, April 15, 2019. The initial public offering of payment-service company Nexi raised 2.01 billion euros ($2.3 billion), making it the biggest listing in Europe so far this year and the third major IPO of a payment-processing institution in the region in less than a year.

As part of the agreement, Nexi would approve a reserved capital increase for SIA shareholders, with no cash component, said the people, who asked not to be named because the talks are private. Nexi would hold about 70% of the merged company and SIA 30%, they said. Cassa Depositi e Prestiti SpA, SIA’s main investor, would have about 25% of the merged entity, the people said.

Loading...

Load Error

Nexi and SIA spokespeople had no comment. The merger announcement could come soon as before the market opens on Monday, said the people. Newspaper Repubblica reported the news earlier.

The firms wrapped up more than a year of negotiations over a combination as payment providers across Europe look for deals that can add scale. Combining the two Italian companies would create a stronger competitor to France’s Worldline SA, which agreed in February to acquire Ingenico Group SA in a 7.8 billion-euro ($9.1 billion) deal.

Discussions have been on the brink of collapse several times over divergences on governance and valuations. In the last few weeks talks intensified after SIA reached an accord to keep Italian lender UniCredit SpA as its main client, a key sticking point in determining its valuation, people with knowledge of the matter