A Hong Kong hedge fund secretly built up the biggest ever short position in the UK by taking huge bets against Premier Oil (PMO) shares. Asia Research & Capital Management should have revealed its bet to the Financial Conduct Authority in February 2017 when its short position in the North Sea oil firm’s shares went above 0.5%. But ARCM, which invests in distressed assets, did not disclose the bet to the watchdog until Friday last week – when it belatedly revealed that it had built up an enormous 17% short position worth £132million. ARCM’s huge short position – thought to be the largest ever disclosed in the UK – is understood to be a hedge against its $380million holding of Premier Oil’s $2.55billion net debt, which becomes repayable in May 2021.
Standard Chartered (STAN) has been accused of ignoring warnings that one of its major clients was helping the Taliban to kill and maim British and American troops in Afghanistan. Documents seen by The Mail on Sunday show that the British bank provided foreign exchange and export finance services to Fatima Group from 2009 until at least 2014. In an extraordinary intervention, a US army general last night claimed he met Standard Chartered bosses in January 2013 to warn that the Pakistani fertiliser firm was helping to supply the Taliban with materials used in the manufacture of deadly homemade bombs.
Marks & Spencer Group (MKS) is paving the way for an historic overhaul of its flagship Marble Arch store as part of a major plan to downsize some of its biggest shops. About 20 stores – mainly in desirable but expensive city centre locations thought also to include Birmingham – are under the microscope as part of the review. The upper floors of the shops could be converted into residential or office space. The majority of the stores affected, mostly locations that occupy four or five storeys, are expected to continue trading as M&S on lower floors. The company last night declined to confirm the names of specific locations affected and the plan is in its early stages. But retail market sources said Marble Arch – which has seven floors and also houses staff training accommodation and a press showroom – has been discussed internally.
M&C Saatchi (SAA) chairman Jeremy Sinclair last night said its bosses have a ‘deep confidence’ in the beleaguered advertising firm after they bought £1million of new shares. The media group saw its shares plummet by nearly 50% last Wednesday as it issued its second profit warning in three months. But under-pressure bosses bought shares worth just under £1million after their price tumbled from 146p to 79p. Sinclair, chief executive David Kershaw and executive director Bill Muirhead – co-founders of the group – bought 415,323 shares each.
The tycoon spearheading the £1.5billion hostile bid for Centamin (DI) (CEY) is under investigation for corruption, The Mail on Sunday can reveal. Sébastien de Montessus, the French boss of Canadian gold firm Endeavour Mining, is being investigated over a scandal at Areva, the state-owned French nuclear firm, after a disastrous takeover. French officials are looking in to whether De Montessus, who runs Toronto-listed Endeavour from London, bribed a foreign public official and engaged in corruption at Areva. He denies the allegations.
MIDAS SHARE TIPS: Miner Shanta Gold Ltd. (SHG) could give your portfolio a rich seam of profits. Midas verdict: Shanta shares have suffered from the Acacia effect, fears about local political risk and concerns about its debt pile. These worries have been overdone and the shares, at 8.25p, should see a material uplift in the months to come. Gold’s prospects are good, Zurrin is doing all the right things to drive production and reduce costs and there is always the chance of some bid action. Buy.
