Monday, 29 December 2014
Last updated 11 hours ago
Jul 7 2014 | 8:35am ET
When it’s not serving as a thorn in Argentina’s side, Elliott Management is pricking the Oversea-Chinese Banking Corp.
The activist hedge fund has bought a nearly 8% stake in Hong Kong-based Wing Hang Bank, which Singapore’s OCBC has announced a US$5 billion deal for. Those shares aren’t enough to block the acquisition, but they could prevent OCBC from delisting Wing Hang.
The Singaporean bank already owns a majority of Wing Hang shares and has won regulatory approval for the deal, enough to seal the takeover. But it needs to amass 90% of Wing Hang stock in order to delist it.
If Elliott can prevent OCBC from getting to 90%, but the bank gets more than 75%, it would be required to sell enough of its shares to maintain the Hong Kong Stock Exchange’s 25% minimum float requirement. That could force it to sell shares at a significant discount to the price it paid for them.
It is unclear what Elliott hopes to achieve with its move: The hedge fund could simply be seeking a higher price from Wing Hang, or could be making a longer-term play on Wing Hang’s real-estate holdings or on OCBC’s ability to improve the bank’s performance. OCBC has previously proven willing to leave stubs of acquired companies listed.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.