Times Online- The lobby group representing some of the stock market’s biggest investors has called on the City watchdog to crack down on activist investors and hedge funds.
The Association of British Insurers (ABI), whose members control about 20 per cent of the market, has singled out the use of derivatives by investors to build up potential controlling stakes in companies, particularly takeover targets. It wants greater disclosure of derivatives at a time when the power of activist shareholders to influence takeovers has reached unprecedented levels.
The ABI’s call represents a clear message to Hector Sants, who takes over as the chief executive of the Financial Services Authority today, not to ignore issues of pressing concern to the markets.
Peter Montagnon, the ABI’s investment affairs director, singled out Robert Tchenguiz, the property investor, who is a potential kingmaker in the unfolding £12 billion takeover battle for J Sainsbury, Britain’s third-largest retailer.
