New York Times – Grumbling sounds are coming these days from stockholders of the Frankfurt Stock Exchange’s parent, Deutsche Börse, about hedge funds.
The long-term plans laid by the Children’s Investment Fund, better known as TCI; Atticus Capital; and other hedge funds appeared to backfire this week, potentially leaving the Deutsche Börse without a merger partner while its rivals are pairing up.
On Tuesday, investors in the cross-border European exchange company Euronext voted down a proposal financed by a hedge fund that would have forced Euronext to consider a deal with Deutsche Börse. In doing so, they indicated that they preferred a tie-in with a rival bidder, the NYSE Group, but wanted a better price.
During the Deutsche Börse annual meeting Wednesday, investors criticized TCI and other funds, and lamented the fate of the German exchange.
TCI, started by a British manager, Christopher Hohn, in 2003, has been an outspoken advocate for a merger of Deutsche Börse and Euronext, and owns shares in each. In January 2005, the fund teamed up with Atticus Capital and several other hedge funds to halt a well-publicized run by Deutsche Börse at the London Stock Exchange and oust the Germans’ senior management.
