Metro Bank shareholders urged to vote against founder Vernon Hill. Metro Bank (MTRO) shareholders have been urged to vote against its founder Vernon Hill next month as the lender fights to restore its reputation in the wake of a major accounting blunder. Mr Hill, who founded the challenger bank in 2010, is fighting to restore his image after it emerged that Metro had misclassified loans and then wrongly told the market that it found the error itself. Investors told The Telegraph earlier this month that Mr Hill must go as a result of the debacle.
Ferrexpo reveals reasons for Deloitte’s resignation as auditor. Deloitte resigned as auditor of Ferrexpo (FXPO) after the Ukraine-based miner delayed launching an independent investigation into the relationship between its chief executive Kostyantin Zhevago and Blooming Land, a charity set up to promote the company’s corporate social responsibility (CSR) goals. After Ferrexpo revealed Deloitte’s resignation in a brief statement to the stock market on Friday, its shares plunged and about a quarter of its market value was wiped out. The FTSE 250 company said only that Deloitte had “resigned from its office as statutory auditor with immediate effect” but gave no further details.
NSF expects regulatory approval for Provident takeover bid. Non-Standard Finance (NSF) has renewed its call for shareholders in Provident Financial (PFG) to accept its hostile takeover offer, saying it expected regulatory approval for the deal following discussions with City regulators. The subprime lenders have been locked in an acrimonious takeover battle that has seen Provident’s board accuse NSF of paying unlawful dividends to its shareholders. NSF has admitted to “technical infringements” of the law. NSF said on Monday it had discussed plans with the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) and expected that the “associated conditions” to its offer would be satisfied by June 5.
Anger over overseas tenders for Navy ships. Pressure is growing on the Government to reclassify Navy support vessels as warships, to save thousands of jobs. A £1bn contract to build up to three Fleet Solid Support (FSS) ships has been tendered internationally: Ministers say that it had to be done under EU competition rules. However the Government faces increasing calls to list the vessels, which carry defensive weapons and supply the fleet with ammunition and stores, as warships. By national security requirements they would then have to be built in Britain.
Oil market jitters may hit profits at Shell and BP, analysts warn. Investors in BP (BP.) and Royal Dutch Shell ‘B’ (RDSB) are braced for weaker profits for the first quarter of this year despite rising production, with slippery oil and gas prices being blamed. Analysts warned oil market jitters could wipe around $12bn off the income statements of Europe’s 12 largest oil firms for the first three months. For the UK’s biggest oil companies, which report their first quarter results this week, the market dip of $3.50 (£2.71) per barrel could bring a reversal of fortunes following recent financial triumphs.
RBS chief could lose £2m bonus if he joins rival Down Under. Ross McEwan, the outgoing chief executive of Royal Bank of Scotland Group (RBS), will have earned around £20m by the time he leaves the taxpayer-controlled lender, but risks losing almost £2m in unvested bonuses if he joins a rival. The New Zealander, who took on the top job in 2013 and four years later led RBS to its first profit after almost a decade of losses, quit last week but will stay in the role for up to 12 months while the board searches for a replacement. The role has been described as the toughest in the UK banking industry and sources say Mr McEwan harbours ambitions to leave the UK and return to “sunnier climes”.
Banks facing new wave of cases linked to Libor scandal. A pension fund in Hawaii has become the latest to accuse banking giants such as Barclays (BARC), Lloyds Banking Group (LLOY) and HSBC Holdings (HSBA) of manipulating the scandal-hit benchmark Libor since its overhaul almost five years ago, court documents show. The latest claim, filed in New York earlier this month and seen by The Daily Telegraph, argues that 18 banks including Royal Bank of Scotland Group (RBS), Deutsche Bank, UBS, JP Morgan, Bank of America and Citigroup “corrupted” the rate-setting process by submitting lower rates to New York Stock Exchange owner ICE.
Investors come down from cannabis high as legal advice suggests backing drug ventures may break UK law. Europe’s largest online trading platform is offloading cannabis stocks after lawyers warned that making profits by dealing in recreational marijuana shares may be a crime. IG Group Holdings (IGG) is pushing to sell its clients’ shares in cannabis stocks and tracker funds before the end of May after seeking legal advice. Stocks impacted by the decision include Aurora Cannabis, a business popular with young investors, Aphria, one of the world’s largest cannabis producers, and New Age Beverages, the business behind Bob Marley-branded cannabis drinks.
Investors are urged to vote against re-electing Countrywide (CWD) director. Investors in Countrywide, the UK’s largest group of estate agents, have been urged to oust one of its directors this week after he missed more than a quarter of its board meetings last year. Caleb Kramer, who makes £40,000 per year as a non-executive director of the company, attended just 10 of the 14 meetings he was supposed to in 2018. Glass Lewis, the influential investor advisory group, said that amounted to “a failure to fulfil a fundamental responsibility to represent shareholders at such meetings” and urged its members to vote against Mr Kramer’s re-election tomorrow.
