HSBC, the troubled investment bank, has come under renewed scrutiny from financial regulators for its role in a controversial dawn raid on shares in OMX, the Swedish stock exchange. Borse Dubai was last week censured by the Swedish financial regulators for failing to follow so-called best-practice rules when it built up a big stake in OMX ahead of launching a full takeover bid in early August. The Swedish authorities want to know if the way in which HSBC contacted the OMX shareholders, and the timing of its calls, broke any takeover rules.
Meanwhile, HSBC is aware of the continuing investigation into its role in the bookbuilding process, but a spokesman for the investment bank in London declined to comment. The renewed scrutiny of HSBC could not have come at a worse time for the troubled investment bank as Knight Vinke, an activist investor, continues its campaign to force a break-up of the giant banking group.
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