Artradis Joins QVT Lawsuit Against UniCredit Subsidiaries

Feb 18 2008 | 11:33am ET

QVT Fund, a global hedge fund with more than $11 billion under management, has a new ally in its dispute against Italy's Unicredit Group. Artradis Fund Management has joined QVT in its lawsuits against UniCredit's subsidiaries Bank Austria Creditanstalt and ATF Bank.

Artradis currently manages over US$3.3 billion dollars in various absolute return funds, and together with QVT, it accounts for 12.3% of ATF's preferred shares, which in total represent approximately 30% of ATF's share capital.

The dispute over the valuation of Kazakhstan's ATF Bank, which has recently been acquired by Unicredit's BACA, relates to the tender offer made by BACA for ATF preferred shares as well as the attempts by UniCredit to appoint  an 'independent' director who was until eight months ago CEO of UniCredit Romania—a move in apparent breach of Kazakhstan business law, which requires three years' separation between connected parties before a director can be considered independent.

“We believe that the offer from Unicredit to minorities in ATF bank significantly undervalues the shareholding of Artradis and other parties,” said Martin Diggle, CIO of Artradis Russian Opportunities Fund. “Specifically, we feel that holders of preferred shares in ATF bank have been materially disadvantaged and we will fight for fair terms for all minorities in this case. We have faith that the Kazakh authorities will want to encourage further investment in this fledgling market, by ensuring an even playing field for all long term investors.”

However, Kazakhstan authorities are currently taking a laissez faire approach to the situation, drawing the attention of Transparency International, the global civil society organization against corruption, which said today that it has started its investigation of the matter.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of