Almost all of Bristol’s public transport could soon be run by an American hedge fund, as a "hostile takeover" of First Group has been launched. First Group - which runs GWR, South Western Railways and First Bus - is trying to fend off a boardroom coup. A special meeting will take place in London on June 25 where the firm will ask shareholders to vote against a requisition put forward by American hedge fund Coast Capital. Coast Capital, which has a 10 per cent stake in the company, wants to remove six of First’s directors and replace them with seven of its nominees. First Group runs almost all of the public transport in Bristol. As well as First Bus West of England, which has the vast majority of routes in the Bristol area, it also runs Buses of Somerset and more services in Dorset, Devon and Cornwall. It also runs South West Trains and GWR, which operate almost all of the train services through Bristol Temple Meads and all of the suburban rail lines in and around Bristol. … [Read more...] about American hedge fund launches ‘hostile takeover’ of First
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A hedge fund which cited concerns over the killing of Washington Post journalist Jamal Khashoggi has returned a $300 million investment to Saudi Arabia’s Monetary Authority (SAMA). Pharo Management, which got the money from SAMA in December 2018, has become the first hedge fund to publicly return Saudi investments over the matter, according to Bloomberg sources. The founder of Pharo, Guillaume Fonkenell, reportedly told some investors in January that the decision was made to uphold the firm’s principles due to concerns about Khashoggi’s death at the hands of Saudi government agents. Also on rt.com US Senators lash out at ‘gangster’ Saudi crown prince, but the deals go on and on Saudi Arabia had faced difficulties in attracting foreign investment for its Vision 2030 project even before the Khashoggi murder in October 2018. The journalist’s assassination brought in even bigger reputational risks for companies wishing to participate in the … [Read more...] about Hedge fund rejects huge Saudi investment over Khashoggi murder
Outsourcing giant Interserve has taken a hammering in recent weeks from a very rowdy shareholder: Coltrane Asset Management. The New York hedge fund has done its utmost to derail a rescue deal designed to save the outsourcer from administration, even threatening to sue Interserve’s board last month. Coltrane may have caused a ruckus, but what do we know about the company? It is headed up by Mandeep Manku, a former trader at Deutsche Bank. Manku worked for the bank until 2007, before heading out to New York to work for hedge fund manager Dan Loeb, who is known for for launching aggressive activist campaigns against corporate boards. He moved on to found Coltrane in 2012. Read more: Interserve changes rescue plan as losses hit £111m Spotless It appears Manku is keen to follow in Loeb’s footsteps. Interserve is not the only outsourcer Coltrane has had dealings with in recent years, after the hedge fund blocked the outright takeover of the Australian cleaning company, … [Read more...] about Coltrane Asset Management: What do we know about the hedge fund ruffling Interserve’s feathers?
The hedge fund trying to thwart Interserve's rescue deal designed to avoid it facing the same fate as Carillion has attracted the support of another major shareholder. Last week Coltrane Asset Management, a 27 per cent shareholder in the firm, launched a bid to oust all members of the outsourcer's board except chief executive Debbie White after the firm announced the details of a deleveraging plan with its lenders. A city source told City A.M. Dutch fund Farringdon Capital Management, which owns 6.2 per cent of Interserve, has written to the outsourcer's board to say it supports Coltrane. Neither Interserve nor Farringdon were immediately available for comment. A vote will now take place in March, in which Interserve needs the support of half its shareholders to go ahead with the rescue deal. Coltrane and Farringdon’s combined stake is around one-third. Interserve’s rescue deal stoked fury at Coltrane because it all but wiped out existing shareholders’ stake in the … [Read more...] about Interserve rescue plan: Shareholder rebellion grows as dissenting hedge fund recruits another supporter
Grand Cayman (CNN Business)1. Buybacks: Veteran hedge fund manager Mark Yusko is deeply skeptical of the stock buyback boom set off by President Donald Trump's tax overhaul. "I call it the tax deform bill. It was just a free handout to rich people who pay a lot of money to lobbies," Yusko, the founder and CEO of Morgan Creek Capital, told CNN Business. Instead of using its tax savings to speed up the economy, Corporate America is just "buying back stock to stimulate their stock price," Yusko said from the sidelines of the Cayman Alternative Investment Summit. Yusko noted that prior to 1982, share buybacks were outlawed by the SEC. "I think they should still be deemed insider trading and illegal," he said. Share buybacks are a common practice where companies repurchase their own shares as a way to return excess capital. Buybacks boost demand for shares and artificially inflate per-share earnings. Read More US companies announced a record-shattering $1 trillion worth of share … [Read more...] about Hedge fund manager: Stock buybacks should be ‘illegal’