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Activist hedge fund becomes largest Royal Mail shareholder
by James Phillipps on Oct 23, 2013 at 08:14
Activist investor The Children's Investment Fund (TCI) has become the biggest shareholder in Royal Mail has become the largest shareholder in the recently nationalised institution after building a 5.8% stake, regulatory filings reveal.
TCI became the first investor to pass the disclosable 5% threshold and will have made a considerable profit with the shares being floated at 330p and having topped 538p before falling back, closing at 499p yesterday.
The news is embarrassing to business secretary Vince Cable who in the past has criticised hedge funds for being short-term investors and he had vowed that Royal Mail would be majority owned by long-term pension fund and similar institutions, including the likes of Fidelity, Legal & General and Standard Life Investments.
TCI's chief Chris Hohn has had a history of shareholder activism, having previously demanded ABN Amro was split up and lobbying the board of EADS and Deutsche Borse against making acquisitions.
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