Investors sue Henderson over Laing acquisition
The Henderson fund management group is being sued for up to £450m in damages by a group of investors including Tesco and the BBC over its £1bn acquisition of John Laing, the construction conglomerate.
The action, brought by a total of 23 of the UK's largest pension schemes, is unprecedented in its nature and scope and concerned the City, which sent Henderson Group's shares down by more than 3 per cent.
BAE Systems, the defence giant, and Bupa, the private healthcare provider, are also among the pension funds suing Henderson for hundreds of millions of pounds.
The case centres around the 2006 acquisition of John Laing by the Henderson PFI Secondary Fund II LP, which raised £573.5m with a remit to focus on so-called private finance initiatives, where public infrastructure projects are funded with private capital.
Shortly after raising the fund, Henderson bought John Laing following a bidding war with Allianz, the insurer, at a price now seen as being inflated.
The investors in the Henderson fund argue that the John Laing deal did not satisfy the mandate to focus on PFI projects and are suing to cover the losses incurred on the deal. They are seeking £170m to cover the loss on the fund – which reached as high as £380m in 2009 – as well as the profits they believe they would have made had the money been invested in a genuine PFI project.
Henderson said: "We have considered these complaints carefully. We are confident that we have no legal liability to investors in this fund. We will vigorously defend these proceedings.".
Diving in at the deep end is no excuse for shirking the style stakes
- 2 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
- 3 Why I'm on the brink of burning my Israeli passport
- 4 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
- 5 The true Gaza back-story that the Israelis aren’t telling this week
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Gaza-Israel conflict: The terrible price children are paying for Israel’s war with Hamas
Rotten-egg smell of farts could help battle heart disease and Alzheimer's
Online trolls target alleged rape victim Jada, by copying how she appeared in video of attack
Sustained immigration has not harmed Britons' employment, say government advisers
War is war: Why I stand with Israel
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Australia facing international condemnation after turning around Sri Lankans at sea
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
iJobs Money & Business
£75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...
£60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...
£35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...
£40000 per annum: Harrington Starr: Network Engineer (CCNA, CCNP, Linux, OSPF,...