Tue, Oct 23, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: Investors and managers can be held liable for the anticompetitive practices of portfolio companies

Wednesday, July 25, 2018

By: Mélanie Thill-Tayara, Laurence Bary, Dechert LLP

The General Court of the European Union recently held, in Goldman Sachs v. Commission, that purely financial investors such as investment funds may be held jointly and severally liable for competition law violations implemented by their portfolio companies when they can exercise "decisive influence" over the company, irrespective of whether they were aware of the infringement or actually influenced the market behaviour of the subsidiary. This decision has several major practical implications for investment funds and private equity funds.

Case Background

In April 2014, the European Commission imposed fines totaling almost €302 million on producers of underground and high-voltage power cables, for engaging in illicit market sharing and customer allocation over a period of almost ten years beginning in 1999 (COMP/39.610 - Power Cables). Notably, the entities fined by the Commission included not only the companies directly involved and their industrial owners but also an investment firm, Goldman Sachs ("the Investor"), whose private equity arm owned Prysmian, one of the producers that was found to have participated in the cartel. The Investor was held jointly and severally liable for €37.3 million of the €104.6 million fine imposed on Prysmian, a share corresponding to the four-year period during which it held a stake in Prysmian.

An investment fund of the Investor had acquired 100% of ......................

To view our full article Click here

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. BB&T Securities to bolster alternative investment offerings with CAIS platform[more]

    Laxman Pai, Opalesque Asia: The financial services firm BB&T Securities has selects the financial product marketplace CAIS to expand alternative investment access for advisors. A press release from the wholly owned subsidiary of BB&T Corporation said that with CAIS, it will gain access to pr

  2. Europe: Europeans up interest in unconstrained bond strategies, Generali steps up efforts to build multi-boutique business, Nordea bank in new Russia funds complaint, FCA proposes climate risk reporting duty for asset managers[more]

    Europeans up interest in unconstrained bond strategies Unconstrained bond assets are on the rise. Across both retail and institutional accounts, assets under management in these strategies rose from $153.2 billion in Q2 2013 to $289.7 billion in Q2 2018, for a five-year compound annual

  3. Investing: Billionaire Leon Cooperman explains how he ended up investing his personal money in pot stocks, U.S. fund investors pull most cash from bonds since February -ICI[more]

    Billionaire Leon Cooperman explains how he ended up investing his personal money in pot stocks From CNBC: Billionaire hedge fund investor Leon Cooperman confirmed to CNBC on Wednesday that he has personal money in the cannabis industry, noting investments in a few young marijuana companie

  4. Activists: Frustrated GM investors ask what more CEO Barra can do, Hedge funds snap up chunks of struggling Debenhams, Retailer Casino's parent Rallye gets offer for 'Courir' sports arm[more]

    Frustrated GM investors ask what more CEO Barra can do From Reuters: General Motors Co Chief Executive Mary Barra has transformed the No. 1 U.S. automaker in her almost five years in charge, but that is still not enough to satisfy investors. Ahead of third-quarter results due on Oct

  5. Opinion: New York billionaire Catsimatidis on equity investing and cryptocurrencies, Tomilson Hill shares his secret to buying great art that turns into even better investment, Howard Marks says markets are in eighth innings[more]

    New York billionaire Catsimatidis on equity investing and cryptocurrencies From Forbes: John Catsimatidis, whose $3.1 billion fortune lies in extensive real estate, Gristedes supermarkets and a Pennsylvania oil refinery, is serious about his investment portfolio. His goal is a double-digi