LONDON, Jan 26 (Reuters) - UK hedge funds are unlikely to follow U.S. funds in suing Porsche, because they are striving to reach a compromise in Europe over tough new rules for the industry, industry sources said.
On Monday a group of U.S. funds alleged market manipulation during Porsche's attempted takeover of Volkswagen when it revealed in October 2008 it controlled about three quarters of VW's voting stock, triggering a vicious short squeeze that hurt short-sellers.
The U.S. legal action comes at a critical time for London, which is home to 80 percent of Europe's hedge fund managers.
Hedge fund executives and UK politicians have been involved in a long-running struggle to try and tone down draft EU proposals put forward last year for tight regulation of the industry and are hoping to reach a compromise with countries such as Germany that back tough rules.
'I'm not aware of a similar move by UK managers,' said an industry source with close knowledge of UK hedge fund managers' plans on the issue.
David Stewart, chief executive of Odey Asset Management, which had been shorting Volkswagen at the time, said his firm had no plans to get involved.
'If anyone's got any sense, they'll just watch it,' he said.
(To read the Reuters Hedge Fund Blog click on http://blogs.reuters.com/hedgehub; for the Global Investing Blog click on http://blogs.reuters.com/globalinvesting/)
(Reporting by Laurence Fletcher) Keywords: PORSCHE/HEDGEFUNDS (laurence.fletcher@thomsonreuters.com; +44 20 7542 7729; Reuters Messaging: laurence.fletcher.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
On Monday a group of U.S. funds alleged market manipulation during Porsche's attempted takeover of Volkswagen when it revealed in October 2008 it controlled about three quarters of VW's voting stock, triggering a vicious short squeeze that hurt short-sellers.
The U.S. legal action comes at a critical time for London, which is home to 80 percent of Europe's hedge fund managers.
Hedge fund executives and UK politicians have been involved in a long-running struggle to try and tone down draft EU proposals put forward last year for tight regulation of the industry and are hoping to reach a compromise with countries such as Germany that back tough rules.
'I'm not aware of a similar move by UK managers,' said an industry source with close knowledge of UK hedge fund managers' plans on the issue.
David Stewart, chief executive of Odey Asset Management, which had been shorting Volkswagen at the time, said his firm had no plans to get involved.
'If anyone's got any sense, they'll just watch it,' he said.
(To read the Reuters Hedge Fund Blog click on http://blogs.reuters.com/hedgehub; for the Global Investing Blog click on http://blogs.reuters.com/globalinvesting/)
(Reporting by Laurence Fletcher) Keywords: PORSCHE/HEDGEFUNDS (laurence.fletcher@thomsonreuters.com; +44 20 7542 7729; Reuters Messaging: laurence.fletcher.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.