Distressed investment funds on the increase
In a sign of the times it has been revealed that a number of "distressed investment funds" have taken substantial stakes in some of the U.K.'s best-known companies. One such company is JJB Sports where Crystal Amber, an activist fund, has taken a near 15% stake in the troubled sports retailer over last few days. This is a situation which has and will be repeated across the UK economy as another extension on the downside offers opportunities to those willing to take some degree of risk.
Activist funds are generally regarded as "movers and shakers" who take stakes in businesses which they believe can be turned round and sold on for significant profit. While there is no doubt there is some value in the UK stock market, and others around the world, the general feeling of concern regarding swine flu and money market rates in the short to medium term has depressed many share prices.
One element of a recovery in the UK stock market and the UK economy would be an increase in corporate activity, takeovers and mergers. As yet we have seen nothing concrete on this particular front although retailer Alexon recently received a bid approach from an unnamed third party.
Share this..
Related stories
FCO launches new travel insurance campaign
14/08/2015 The Foreign & Commonwealth Office (FCO) has warned holidaymakers against travelling without purchasing the correct travel insurance first. Going away on holiday without insurance, or a “Getaway Gamble”, can end up costing the traveller thousands of pounds if something goes wrong. Recent data from The Association of British Insurers revealed the average travel insurance medica...
Read MorePension fund deficits continue to rise
It has been revealed that the U.K.'s top 200 pension schemes are in deficit to the tune of £100 billion. While there has been intense speculation over the last few weeks regarding the size of pension scheme deficits in the UK, the fact that the £100 billion figure has been breached for the first time ever is a massive blow to the sector. Even though there are obviously enormous implications f...
Read MoreBritish Airways to merge with Spanish giant Iberia
The long-awaited merger of British Airways and Spanish airline Iberia has been confirmed, creating a £4.4 billion business which will be one of the leading airlines in the world. This is a deal which has been ongoing for some time and one which has attracted significant criticism from various unions and consumer groups. So what does this mean for the future of British Airways?
As w...
Lloyds bank announces terms of fundraising
Lloyds bank has today announced that the company has received across-the-board support for a bond exchange program and the company's £13.5 billion rights issue. All in all, the company refinancing will total around £22.5 billion, an increase from the initial estimate of £21 billion. The £13.5 billion rights issue is a record in the UK in itself although this does grow when you also take into a...
Read MoreMortgages continue record run
Britain's mortgage lending notched up another monthly record in March, new figures from the Council of Mortgage Lenders (CML) reveal.After monthly records in January and February, March continued 2007's record-breaking performance with £31.3 billion lent in mortgages last month.That represents a 22 per cent increase from February's figure of £24.6 billion, which was lower because of seasonal shi...
Read More