Big hitters support Hannam over FSA
Builders ease business fears of double-dip
City Editor CITY chiefs have jumped to the defence of Ian Hannam, the hotshot dealmaker at JP Morgan Cazenove fined £450,000 for passing on inside information.
The former special forces soldier resigned after being caught tipping off firms, looking to expand their business in Kurdistan, about an oil discovery made by his client, Heritage Oil.
Hannam was employed by Heritage in 2007 to secure a merger or a takeover for the firm, which has an extensive oil field in Kurdistan.
But the Financial Services Authority yesterday ruled that he had overstepped the mark by providing inside information to Heritage’s potential suitors.
In one of the offending emails, sent on September 9, 2008 Hannam told ‘Mr A’ – who works for an unnamed company: ‘I thought I would update you on discussions ... with a potential acquirer of Tony Buckingham’s business (Heritage Oil)… we know they are very excited about the recent drilling results of Heritage Oil ... I believe that the offer will come in ... at £3.50-£4.00 per share. I am not trying to force your hand ... just wanted to make you aware of what is happening.’
Just over a week later Heritage announced it was in discussions with a firm interested in some of its assets.
A second email dated October 8, 2008, stated: ‘PS – Tony (Buckingham) Fall from grace: Ian Hannam’s censure is another embarrassing blow for JP Morgan Cazenove has just found oil and it is on the line to back Hannam, who spectacular fall from grace for looking good.’ This message, sent is appealing the FSA’S decision one of the City’s top ‘rainmakers’ to Mr A and Mr B – an unnamed in the Upper Tribunal. Xstrata and another embarrassing blow businessman – referred to drilling boss Mick Davis called Hannam for JP Morgan Cazenove. In 2010 in Uganda by Heritage. a ‘credit to this profession’ and the bank incurred the FSA’S largest
Hannam has advised on a series said he had ‘always acted with ever fine of £33.3m for failing of mega deals including the proposed honesty and integrity’. to protect customers’ money. merger of commodities Martin Gilbert, who runs Aberdeen, The FSA said Hannam has not trader Glencore and miner said: ‘Without Ian Hannam, acted dishonestly or profited from Xstrata, as well as the float of Aberdeen Asset Management the inside information. But it FTSE 100 fund manager Aberdeen would not have survived referred to ‘the need to punish Asset Management. its 2002-4 downturn and would him and to deter him and others
Yesterday the bosses of two of not be a FTSE 100 company in possession of inside information these firms put their reputations today’. The censure marks a from committing market abuse’. FEARS the UK economy could plunge back into recession eased yesterday after British builders saw new orders rise at the fastest rate for four and a half years, writeshugo Duncan.
A survey by economic research group Markit found construction firms enjoyed ‘a substantial rise in new business’ last month and took on more staff.
It helped the closely watched Markit/cips purchasing managers’ index of activity in the sector – where anything above 50 represents growth – jump from 54.3 in February to a 21-month high of 56.7 in March.
Growth was registered across the sector including in house building, commercial development, and civil engineering.
‘The good weather appears to have led to a surge in demand for construction projects in March, adding to the recent flow of good news which suggests the economy will have skirted a recession,’ said Chris Williamson, chief economist at Markit.
The economy shrank by 0.3pc in the final quarter of 2011, leaving it on the brink of the first double-dip recession in Britain since 1975. But hopes are rising that the economy returned to growth in the first quarter of 2012.
The construction figures came after an equivalent survey of manufacturers showed factory output at its highest for 10 months in March. All eyes will be on today’s health check on the powerhouse services sector.
The British Chambers of Commerce said it expects the economy to grow by 0.3pc in the first quarter of 2012 – reversing the decline at the end of last year. But the Organisation for Economic Cooperation and Development predicts a further decline of 0.1pc. Official figures later this month will reveal if the economy avoided recession.
Blerina Uruci, an economist at Barclays Capital, said the latest news ‘provides something to cheer about regarding the performance of the UK economy in the first quarter of this year’.