Wednesday, January 10, 2007
LSE: Heyman increases stake to more than 10% - reports
Samuel Heyman, the private investor, has increased his shareholding in the London Stock Exchange (LSE) to more than 10%, a Daily Telegraph report said.
The 10% figure is important in that it gives Heyman the ability to call an extraordinary meeting to force LSE’s board into talks with Nasdaq, the US-listed stock exchange operator, should he wish. The report did not directly attribute the claim regarding Heyman's stake-building.
Heyman has on several occasions used such a strategy to engineer higher returns for investors, the report noted. He recently was believed to be one of several parties involved in a letter from several hedge funds to the directors of Arcelor, demanding a vote on its merger with Mittal Steel, the report explained.
Heyman’s plans for his stake in LSE are not known, the item continued. However, it is anticipated that Heyman’s involvement goes beyond a mere quick return. His recent transactions would indicate that Heyman would be reluctant to take Nasdaq’s 1243p per share takeover bid for LSE, even though it is believed that Heyman has built his LSE stake at below the bid price, the report added.
Heyman’s latest share buy, via a contract-for-difference, is 3% higher than the Nasdaq bid price, the report continued. Heyman’s stake now stands at 10.03% via his Heyman Investment and Vesper Holdings vehicles.
Separately, the Financial Times reported that LSE yesterday published third quarter results detailing an upswing in trading for December. Pre-tax profits increased by 10% to GBP 44.2m (EUR 65.9m) during the third quarter ending 31 December, 2006, LSE said. The Financial Times report also noted Heyman’s stake-building. LSE shares closed 2p down at 1280p, giving the company a market capitalisation of GBP 2.72bn (EUR 4.06bn).
The 10% figure is important in that it gives Heyman the ability to call an extraordinary meeting to force LSE’s board into talks with Nasdaq, the US-listed stock exchange operator, should he wish. The report did not directly attribute the claim regarding Heyman's stake-building.
Heyman has on several occasions used such a strategy to engineer higher returns for investors, the report noted. He recently was believed to be one of several parties involved in a letter from several hedge funds to the directors of Arcelor, demanding a vote on its merger with Mittal Steel, the report explained.
Heyman’s plans for his stake in LSE are not known, the item continued. However, it is anticipated that Heyman’s involvement goes beyond a mere quick return. His recent transactions would indicate that Heyman would be reluctant to take Nasdaq’s 1243p per share takeover bid for LSE, even though it is believed that Heyman has built his LSE stake at below the bid price, the report added.
Heyman’s latest share buy, via a contract-for-difference, is 3% higher than the Nasdaq bid price, the report continued. Heyman’s stake now stands at 10.03% via his Heyman Investment and Vesper Holdings vehicles.
Separately, the Financial Times reported that LSE yesterday published third quarter results detailing an upswing in trading for December. Pre-tax profits increased by 10% to GBP 44.2m (EUR 65.9m) during the third quarter ending 31 December, 2006, LSE said. The Financial Times report also noted Heyman’s stake-building. LSE shares closed 2p down at 1280p, giving the company a market capitalisation of GBP 2.72bn (EUR 4.06bn).
