Guardian Unlimited- Pressure mounted yesterday on the government to nationalise Northern Rock after an activist investor in the stricken bank revealed it had increased its shareholding for a third time in three days, positioning itself to block deals that favour the taxpayer over shareholders.<\/p>\n
Hedge fund RAB Capital confirmed it had pushed up its shareholding on New Year’s Eve to almost 7.6% after purchasing 350,000 shares. The spending spree followed similar raids earlier in the week by the firm, which has publicly pushed for investors to be given a more prominent role in any private sale.<\/p>\n
RAB has joined forces with several investors, including the Monaco-based hedge fund SRM Global, to push for a higher price from bidders. Last week they scored a significant victory when they secured an emergency shareholders’ meeting, to be held in the bank’s home city of Newcastle on January 15. SRM, which owns 10% of the lender, and RAB have tabled resolutions that, if passed, would prevent the board from selling assets of 5% or more without investors’ approval.<\/p>\n