Why Hargreaves prefers perpetuity to profiting

WALL Street giant Morgan Stanley stunned global markets with its $13 billion (£10 billion) takeover of online broker E*Trade last week.

Naturally, the City rumour mill went into overdrive and financiers, brokers and fund managers wondered who might be next.

Could one of the other big banks possibly be interested in buying British fund supermarket Hargreaves Lansdown, given it is the biggest online player in the UK?

If a Barclays or Goldman Sachs does decide to make a swoop they might run into a brick wall in the form of Peter Hargreaves, the company’s founder who is no longer on the board but still its largest shareholder. Asked whether the company could be a takeover target, Hargreaves said

‘it depends on price’.

But Hargreaves, 73, who still has a 24 per cent stake after cashing in millions earlier this month, added: ‘I can’t see why I would be tempted to sell my stake. I’m not sure I would be that keen on seeing Hargreaves Lansdown acquired as I would quite like to have my name on a FTSE 100 company in perpetuity.’

That sounds rather like it would be a tough sell.

■ WHILE Serco may start paying dividends again, others fear for Hammerson’s shareholder payout.

On Friday, the owner of the Bullring in Birmingham sold its out-of-town retail parks for £455million to pay off debt.

Rival shopping centre owner Intu faces its own crisis as it struggles to raise £1billion. But could Hammerson go one step further this week? Scribblers at Peel Hunt think the company could take the axe to the dividend to preserve its cash.

They said: ‘We see this as a prudent and necessary step as the business continues to navigate its way through the changing retail landscape.’

■ SHARES in AB Dynamics, the AIM-listed car testing company, have slammed into reverse since its annual results at the end of November.

The slump was caused by concerns about falling margins and prompted a raft of downgrades to forecasts for this year.

Now, it appears the hedge funds are hoping for further pain. Lombard Odier and JP Morgan have become the first investors to take out major bets against AB Dynamics’ shares.

The short positions – a way of profiting from share price falls – are worth just over £5million based on the company’s £460 million market value.