MSNBC – The head of Novartis, Daniel Vasella, has called for regulators to look into hedge funds and the media after growing concerns about their roles during recent speculation over his company’s takeover plans.
Dr Vasella, chairman and chief executive of Europe’s second-largest pharmaceuticals group, stopped short of demanding new regulations.
But he expressed fears about an intensifying “systemic” problem, akin to the abuses revealed in relations between equity analysts and investment bankers during the dotcom boom.
“There are two parties that can potentially take advantage. The agents for the vendor, who can try to ramp up a share price by spreading rumours. And now you have the hedge funds,” he said.
The comments came against the background of extreme volatility in the shares of Serono, the Swiss biotechnology group that is currently in play.
