Monday, 1 September 2014
Last updated 2 days 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.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...