Hedge Fund Reader : New terror flag raised bar in London

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October 13, 2005

New terror flag raised bar in London

There is a different terror situation which organizations in London which they are getting scared of. Though, this time its not the human bombs or the terrorists which rock the city, they are the infamous, hedge funds. They have been wrecking havoc in the financial world and have become the new terror raiders in the corporate world. This new industry has been racking up trade volumes on the London Stock exchange and now 40% of the share trades on the exchange. They are the new corporate raiders now. The hedge funds are now trying to make hostile bids for Marks & Spencer by backing Mr. Philip Green. Mr. Paul Myners, the Marks & Spencer chairman is now trying to put up a strong defense against the outsiders, when the company’s own board of directors changed tactics and sold of its financial services arm to HSBC to return £2.3 billion of cash to shareholders. The cash rich hedge funds rule the roost now; they are the new pirates of the millennium after the private equity buyout firms ruled in the 1980’s -90’s. Sunday Herald Online Reports:

Public markets such as the London Stock Exchange (LSE) should be as transparent a place as possible in which to do business. To ensure this, listed companies report their various ventures and dealings, and institutional funds do the same with their major holdings and transactions. The idea is that this gives investors enough information to make fairly educated decisions.

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October 13, 2005 in Gossip & Scandal, Regulation, Research, Strategy | Permalink