Monday, 20 October 2014
Last updated 3 days ago
Jun 13 2007 | 8:41am ET
Barclays said Tuesday that it is moving forward with its proposed merger with Dutch bank ABN Amro, in spite of growing opposition among hedge fund shareholders.
On Monday night, Seacliff Capital, a San Francisco hedge fund not noted for its activism, inveighed against the deal with Barclays management. In an e-mail to top Barclays executive, James Ellman, president of the $200 million fund, wrote, “We are not a large shareholder but we do not understand the logic of this deal,” according to the Financial Times. “We are very unhappy with it and would vote against it.”
Seacliff has already put its money where its mouth is: The fund has slashed its small stake in the British bank by roughly half since the merger bid was announced.
But Barclays CEO John Varley said the deal is moving ahead.
“The progress which Barclays has made with its regulatory filings and offer documentation demonstrates the high degree of deliverability and certainty which the Barclays offer provides ABN Amro shareholders,” he said in a statement. “Approval is currently pending with the relevant regulatory authorities.”
Seacliff is the second hedge fund with a stake in Barclays to cry foul over the deal. Atticus Capital, which owns about 1% of the bank, has publicly called for Barclays to drop the bid and has said it will vote against the merger.
On the other side of the deal, hedge funds are also battling the bid. London-based The Children’s Investment Fund, an ABN shareholder, has vocally criticized the deal and the negotiations leading to it. The hedge fund had been seeking to split up ABN before the deal with Barclays was announced.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...