Knight's tale

13 September 2007 By Mike Verdin

It might not appear that way the global bank trades near the sum of its parts. But it doesn t look difficult to squeeze out more value. Redeploying firepower from investment banking and mature markets might improve its profitability and its rating.

This content is for Subscribers only

Context News

Knight Vinke has been contacted by 10 of HSBC's top 20 investors with a view to discussing the activist investor's claim that the global bank is up to 50% undervalued, according to a person familiar with the situation.

The fund has urged the bank to undertake a strategic review, headed by Simon Robertson, HSBC's senior independent director.

HSBC said it had made significant changes to its strategy following a review by the board last year. The changes included: balancing, at 50:50, the profits contribution from developed and emerging markets; a 1,000 day plan to develop insurance businesses; and a shift in investment banking towards emerging markets.

Email a friend

Please complete the form below.

Required fields *