The Financial Times quotes Neil Vickers on toughest move by Takeover Panel in 18 years
15 July 2010
As reported, one of the UK's most high-profile activist
investors was banned from undertaking merger-related activity in
the country for three years by the City's takeover regulator in its
most draconian punishment in 18 years.
In a highly unusual move, the Takeover Panel publicly ordered
banks and brokers to "cold-shoulder" Brian Myerson and two other
investors, Brian Padgett and Daniel Posen. The ruling means that
for three years no institution can work deals with the three men,
who were found to have broken market rules by secretly working
together as a so-called "concert party" to buy 6.7 million shares
in Principal Capital Investment Trust and then to have participated
in a "cover up" to conceal their activities.
It was only the second time in 40 years that the Panel has
formally used the "cold-shoulder" sanction.
Neil Vickers, M&A partner at international
law firm Denton Wilde Sapte, said the ruling followed the trend for
regulators to crack down on market abuse in the wake of the
financial crisis. "This shows that the Panel has teeth and is
prepared to take action where they think behaviour warrants
it."