'King of Miners,' Ian Hannam, faces accusers on insider leak allegations

Ian Hannam, the former soldier who became one of the City's best-known advisers on big corporate takeovers, yesterday opened the first day of his appeal against the fine and censure he received alleging he used insider information to help a client.

His case is one of the biggest of its kind ever to have hit the financial district and is set to run for up to two weeks as the banker fights to clear his name.

Mr Hannam was fined £450,000 by the then-Financial Services Authority for allegedly revealing price-sensitive information about a client.

He claims he was simply trying to help flush out a takeover offer for the client, Heritage Oil & Gas, by emailing what he claimed was very general information.

The case in the Upper Tribunal in London is being closely watched by City takeover specialists as it will all essentially hang on the definition of what constitutes insider information.

The QC for the Financial Conduct Authority, Richard Boulton, defended its ruling, saying the first of the two emails in question was a "paradigm" example of insider information, while the second was more "nuanced".

Even so, he went on to say: "If it looks like a duck, walks like a duck and quacks like a duck, it's probably a duck."

However, Mr Hannam's barrister described the case as "misconceived".

In a statement, Mr Hannam said: "I was acting in the proper course of my employment as a corporate financier, pursuing a transaction on behalf of my client, Heritage Oil & Gas."

The first email said to his contact, a representative of an organisation with Kurdistan business interests: "I believe that the offer will come in in the current difficult market conditions at between 350p and 400p a share."

The second said, in reference to Heritage chief executive Tony Buckingham, that he "has just found oil and it is looking good." Heritage later that month announced an oil find.

Mr Hannam claims his departure, as a result of the allegation, from JPMorgan Cazenove cost him as much as £30m in lost bonuses and pay. The case continues.

Man behind myth

Ian Hannam revelled in his status as one of the City's best-known dealmakers. A "rainmaker", or "big swinging dick" in Square Mile parlance, the 56-year-old was dubbed "King of the Miners" and made the London Evening Standard's list of the top 1,000 most influential Londoners.

While he stitched together deals in many sectors, he is best known for the mining megamoves like the $40bn creation of BHP Billiton and the flotation of Xstrata. Formerly in the Territorial Army's version of the SAS, he grew up in Bermondsey, south-east London, and was an engineer in Nigeria and Oman before becoming a banker in 1984.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Digital Optimisation Executive - Marketing

£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...

Recruitment Genius: Financial Reporting Manager

£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...

Recruitment Genius: Payments Operations Assistant

£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...

Recruitment Genius: Telephone Debt Negotiator

£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...

Day In a Page

Sepp Blatter resignation: The beginning of Fifa's long road to reform?

Does Blatter's departure mean Fifa will automatically clean up its act?

Don't bet on it, says Tom Peck
Charles Kennedy: The baby of the House who grew into a Lib Dem giant

The baby of the House who grew into a Lib Dem giant

Charles Kennedy was consistently a man of the centre-left, dedicated to social justice, but was also a champion of liberty and an opponent of the nanny-state, says Baroness Williams
Syria civil war: The harrowing testament of a five-year-old victim of this endless conflict

The harrowing testament of a five-year-old victim of Syria's endless civil war

Sahar Qanbar lost her mother and brother as civilians and government soldiers fought side by side after being surrounded by brutal Islamist fighters. Robert Fisk visited her
The future of songwriting: How streaming is changing everything we know about making music

The future of songwriting

How streaming is changing everything we know about making music
William Shemin and Henry Johnson: Jewish and black soldiers receive World War I Medal of Honor amid claims of discrimination

Recognition at long last

Jewish and black soldiers who fought in WWI finally receive medals after claims of discrimination
Beating obesity: The new pacemaker which helps over-eaters

Beating obesity

The new pacemaker which helps over-eaters
9 best women's festival waterproofs

Ready for rain: 9 best women's festival waterproofs

These are the macs to keep your denim dry and your hair frizz-free(ish)
Cycling World Hour Record: Nervous Sir Bradley Wiggins ready for pain as he prepares to go distance

Wiggins worried

Nervous Sir Bradley ready for pain as he prepares to attempt cycling's World Hour Record
Liverpool close in on Milner signing

Liverpool close in on Milner signing

Reds baulk at Christian Benteke £32.5m release clause
On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

On your feet!

Spending half the day standing 'reduces risk of heart attacks and cancer'
With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

The big NHS question

Why are there so few new GPs when so many want to study medicine?
Big knickers are back: Thongs ain't what they used to be

Thongs ain't what they used to be

Big knickers are back
Thurston Moore interview

Thurston Moore interview

On living in London, Sonic Youth and musical memoirs
In full bloom

In full bloom

Floral print womenswear
From leading man to Elephant Man, Bradley Cooper is terrific

From leading man to Elephant Man

Bradley Cooper is terrific