Fri, Jan 19, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

British activist hedge fund Laxey rejects financing plan for Swissmetal

Tuesday, July 12, 2011
Opalesque Industry Update - Swissmetal is in trouble. It recorded its third negative year in 2010; it is seriously considering mass layoffs; several managerial heads have rolled already; and one of the factories is planned to be dismantled.Reuters said on Friday that shares in the group, which focuses on specialty products made of copper and copper alloys, had tumbled 26.3% - to CHF2.80, losing half of its value in five days.

The company is trying to find a rescuer: company chairman Martin Hellweg said Swissmetal would need a “white knight” investor, reported World Radio Switzerland.

British activist hedge fund Laxey Partners owns nearly a third of the group, that is, 29%.

According to Swiss daily paper Le Temps, negotiations held on July 1st between investors and Laxey led to nowhere. Laxey, who had presented three candidates for the General Meeting, refuted a proposed financing plan - and refused to explain to Le Temps why it had done so, just when it risks losing up to 80% of its investment in the metal group.

Martin Hellweg commented that Swissmetal’s difficulties spring from the banks who are keeping hold of the company’s stocks. The Swiss government has no intention of getting involved, due to lack of “clarity.” And investors are generally sceptical with regards to its chances of survival. So Laxey might simply be cutting its losses for now.


Furthermore, Laxey Partners was recently in the news for making a second attempt in as many years to oust four directors of Singapore-listed United International Securities (UIS) – as it owns 10% of the firm. It also asked directors to explain why UIS' share price was well below the net asset value of the shares, reported the Straits Times. Also, the UK’s £3.2bn Alliance Trust recently won a battle with Laxey, who wanted to force changes.

Laxey Partners, which is registered in the Isle of Man and has offices in London, has been established 13 years and earned a reputation as a feared corporate raider through agitating at companies such as Wyevale Garden Centres and British Land to raise their share prices, said CityAm, who shortlisted the it as one of the alternative managers of the year.

B. Gravrand

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Legal - Former Och Ziff hedge fund executive indicted for fraud in Africa investment scheme, prosecutor says, Hedge fund blasts defense of Puerto Rico restructuring law[more]

    Former Och Ziff hedge fund executive indicted for fraud in Africa investment scheme, prosecutor says From CNBC.com: A former hedge fund executive faces federal charges for defrauding a UK-based charity over investments in Africa, according to a grand jury indictment made public Wednesday.

  2. U.S. economy, inflation and alternative investments to dominate 2018 markets, says family office Wilmington Trust[more]

    Komfie Manalo, Opalesque Asia: The emergence of a late-cycle economy in the U.S., the mystery of inflation and growth from a domestic and global perspective, and the potential for alternative investments to prosper against a backdrop of rich valuations, low yields, and higher volatility are the t

  3. Performance - Some hedge funds deliver double-digit gains for 2017, Brevan Howard's hedge fund suffers biggest annual loss in 2017, Crispin Odey's flagship hedge fund plummeted about 20% in 2017, Profits fall 90% at ex-Morgan Stanley banker's hedge fund, Fannie-Freddie overhaul might mint hedge fund riches, losses[more]

    Some hedge funds deliver double-digit gains for 2017 From Reuters/Investing.com: A handful of hedge funds ended 2017 with double digit returns, their investors said, at a time the $3 trillion industry took in fresh money and posted its best returns in years, industry data show. Act

  4. Investing - Hedge funds start 2018 with record $19 billion bet on the euro, Hedge fund Kora Management invests in Satin Creditcare[more]

    Hedge funds start 2018 with record $19 billion bet on the euro From Reuters.com: Hedge funds have kicked off 2018 with their biggest bet ever on the euro rising, a clear vote of confidence in the single currency but, with positioning so stretched, one which could backfire in the near ter

  5. News Briefs - Mobius to retire from Franklin Templeton, Authorities decrypt smart phone of Princeton grad charged with killing Manhattan hedge fund dad, Investigators seize (more) antiques from hedge-fund billionaire Michael Steinhardt's collection[more]

    Mobius to retire from Franklin Templeton Emerging markets pioneer Mark Mobius will be stepping down as executive chairman of the Templeton Emerging Markets Group (TEMG) and formally retire from Franklin Templeton on 31 January. He will also be relinquishing his post as portfolio manager