HSBC declines strategic review call
Europes biggest bank, HSBC Holdings, rejected a new call from an investor to hold a strategic review and to re-examine its corporate governance.
By TNN |
LONDON: Europes biggest bank, HSBC Holdings, rejected a new call from an investor to hold a strategic review and to re-examine its corporate governance on Sunday.
The California State Teachers’ Retirement System (Calstrs), a fund which has a relatively small equity holding in the bank, criticised HSBC in a letter for failing to address concerns raised by fellow shareholder Knight Vinke Asset Management last month.
Knight Vinke, which owns around 0.3% of shares in HSBC, had called on the bank to focus on Asia and consider selling businesses in Europe and North America.
Calstrs has invested $300 million in HSBC’s shares and $1.5 billion in corporate bonds, according to The Observer newspaper on Sunday, which said it had seen a copy of the letter to HSBC’s Chairman Stephen Green.
Calstrs’ letter criticised the bank for rejecting a strategic review before meeting with Knight Vinke, the newspaper reported.
A statement issued by HSBC on Sunday said it was disappointed that this letter had been leaked.
“The board sees no need for a further strategic review having already undertaken such a review earlier this year,” said HSBC in a statement on Sunday.
It added, “...we believe that the principal points made by Knight Vinke have already been fully addressed, not just through correspondence, but through the meeting with our senior independent director.” Calstrs was not immediately available for comment.
The California State Teachers’ Retirement System (Calstrs), a fund which has a relatively small equity holding in the bank, criticised HSBC in a letter for failing to address concerns raised by fellow shareholder Knight Vinke Asset Management last month.
Knight Vinke, which owns around 0.3% of shares in HSBC, had called on the bank to focus on Asia and consider selling businesses in Europe and North America.
Calstrs has invested $300 million in HSBC’s shares and $1.5 billion in corporate bonds, according to The Observer newspaper on Sunday, which said it had seen a copy of the letter to HSBC’s Chairman Stephen Green.
Calstrs’ letter criticised the bank for rejecting a strategic review before meeting with Knight Vinke, the newspaper reported.
A statement issued by HSBC on Sunday said it was disappointed that this letter had been leaked.
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“The board sees no need for a further strategic review having already undertaken such a review earlier this year,” said HSBC in a statement on Sunday.
It added, “...we believe that the principal points made by Knight Vinke have already been fully addressed, not just through correspondence, but through the meeting with our senior independent director.” Calstrs was not immediately available for comment.
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