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By Benedicte Gravrand, Opalesque London:
FINMA, the independent financial markets' supervisory authority based in Bern, has filed away an investigation launched against Focus Capital last year for alleged infringement of duty to announce takeover bids. Focus was a New York-based hedge fund, a mid-cap specialist, founded in 2005 (not to be confused with the London-based FoHFs Focus Capital or with NYC-based FoHFs and seeder Focus Investment Group).
Swiss newswire Romandie.com reported yesterday that there was no clear indication that the hedge fund had breached the law. The investigation was launched last summer following complaints from Hiestand, a Swiss industrial baker, and Schulthess, a manufacturer of household equipment.
Focus owned stocks in both companies, and when it experienced difficulties in February 2008, it reportedly quickly sold most of its stake, i.e. 32%, in Hiestand to a private equity firm and most of its stake in Schulthess too.
Hiestand contacted the Swiss Federal Banking Commission (SFBC), Romandie.com said, claiming that if Focus had owned more than a third of its capital, it should have announced a takeover bid publicly.
Schulthess also complained to the SFBC as Focus' move (Focus owned more than 28%) had led to a considerable drop in the value of its stock on the Swiss bourse. A drop which short-sellers took advantage of. The news was also reported in the Swiss German press.
2008 collapse
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