Activist Investor Palliser Wants Rio Tinto to Unify Listing (1)

Palliser Capital said Rio Tintoshould abandon its primary listing in London and unify its corporate structure in Australia, after the activist investor acquired a stake in the mining giant.

Rio’s “outdated” dual-listed structure means it’s trading at a discount to peers, James Smith, founder of Palliser, said at the Sohn Hong Kong Investment Leaders Conference on Thursday. Palliser has bet about $180 million on the world’s second-biggest mining company.

“It’s a first class portfolio of assets with significant undervaluation caused by a complicated structure,” said Smith, adding that Rio’s London-listed stock trades at a discount to the shares ...