Each business day HedgeCo.Net keeps you informed with the top hedge fund industry news, opinion and insight from around the globe. From the latest hedge fund launches, to the impact of regulation, competition, and investor activism - we track the topics and people that make a difference to you.
Globe and Mail – HudBay Minerals Inc. chief executive officer Allen Palmiere tried to amend the terms of a controversial merger agreement with Lundin Mining Corp. after shareholders slammed the proposed transaction, according to court documents released by a hedge fund trying to oust Mr. Palmiere and the HudBay board.
Monaco-based SRM Global Master Fund LP, which owns 11 per cent of HudBay’s stock, said HudBay’s board of directors is “incapable of creating value and serving the best interest of shareholders,” in a filing with securities regulators Wednesday. The SRM circular calls HudBay’s ill-fated attempt to merge with Lundin a “slip-shod process” that included management-dominated negotiations and “neglect” by the HudBay board. It also includes an excerpt from a text message sent by Mr. Palmiere to Lundin’s CEO, Phil Wright, on Nov. 26, just five days after the deal to combine HudBay’s Manitoba zinc and copper operations with Lundin’s mines in Europe and Africa was announced.
Reuters – A hedge fund manager, a brokerage trader and a financial adviser were charged on Thursday with insider trading in the stock of supermarket chain Albertsons Inc, reaping total profits of about $7.5 million, according to court documents.
The criminal complaints were filed in U.S. District Court in Manhattan against Joseph Contorinis, a former employee at Jefferies Asset Management LLC, as well as trader Michael Koulouroudis and financial adviser Nicos Achillea Stephanou, whose employers were not immediately known.
Jefferies was not mentioned in the complaint against Contorinis. Firm spokesman Tom Tarrant said Contorinis left a year ago. He declined to comment on the charge or arrest of Contorinis by the FBI on Thursday.
CNNMoney.com – ACF Industries and Bank of America Corp. (BAC) are suing hedge fund Steel Partners, accusing the fund of fraud by failing to tell investors of plans to go public, Reuters reported Wednesday.
Reuters says ACF, which court documents say is affiliated with Carl Icahn, invested $15 million with Steel Partners Offshore Fund Ltd, which became Steel Partners II (Offshore) Ltd. In the suit, Bank of America, acting as trustee for ACF’s employee pension fund, accuses Steel Partners of failing to give proper notice of plans to become a publicly traded partnership.
