London-based activist investor Palliser Capital has reportedly acquired a stake of up to 2% in Britain’s Autotrader Group (AUTOA.L). The news, disclosed by a source familiar with the matter on Thursday, comes as the automotive marketplace navigates increasing pressure from advancements in artificial intelligence and heightened regulatory scrutiny. Following the report, Autotrader shares saw a lift, climbing 4.2% to 521.2 pence per share, significantly outperforming the benchmark FTSE-100 index, which was down 0.7% on the day.
Palliser Capital’s stake, estimated to be between 1% and 2%, would be valued at approximately £81.2 million ($110.6 million) based on Autotrader’s previous closing price. The fund manager is known for its activist approach, having previously advocated for shareholder returns at companies such as Japan’s SMC Corp and launched an unsuccessful campaign regarding Rio Tinto’s dual listing. Sky News, which first broke the story, indicated that while Palliser supports Autotrader, it is urging the group to return around £700 million to shareholders through mechanisms like buybacks, dividends, and tender offers. London-based Palliser declined to comment, and Autotrader did not immediately respond to inquiries.
Autotrader operates as a prominent online platform connecting buyers and sellers of new and used vehicles, offering advertising, data, and transaction services. The company’s business model is considered vulnerable to disruption as artificial intelligence capabilities expand, particularly impacting global advertising and data companies. Furthermore, Autotrader has been under investigation by Britain’s competition regulator since March, as part of a wider crackdown on fake reviews and misleading online ratings. The company’s shares have experienced a significant decline, losing nearly 42% of their value over the past 12 months, after peaking at 920 pence each in May 2025.
