Guardian Unlimited- Pressure mounted yesterday on the government to nationalise Northern Rock after an activist investor in the stricken bank revealed it had increased its shareholding for a third time in three days, positioning itself to block deals that favour the taxpayer over shareholders.
Hedge fund RAB Capital confirmed it had pushed up its shareholding on New Year’s Eve to almost 7.6% after purchasing 350,000 shares. The spending spree followed similar raids earlier in the week by the firm, which has publicly pushed for investors to be given a more prominent role in any private sale.
RAB has joined forces with several investors, including the Monaco-based hedge fund SRM Global, to push for a higher price from bidders. Last week they scored a significant victory when they secured an emergency shareholders’ meeting, to be held in the bank’s home city of Newcastle on January 15. SRM, which owns 10% of the lender, and RAB have tabled resolutions that, if passed, would prevent the board from selling assets of 5% or more without investors’ approval.
