The French financial regulator is investigating suspected collusion between hedge funds and private equity designed to force listed companies to accept a buy-out.
The Autorité des Marchés Financiers is looking at several cases where it fears hedge funds acted as a front for buy-out firms. The fear is that activist funds pushed managements into putting companies up for sale, without disclosing advance agreements to sell stakes to private equity groups, which would then gain a significant advantage in an auction.
See full Article (paid subscription required).
Posts
