Financial Times FT.com

UK investors dig in over pre-emption rights

By Kate Burgess

Published: October 22 2007 23:24 | Last updated: October 22 2007 23:24

European Union authorities have infuriated UK investors by suggesting that pre-emption rights – the right of first refusal to new share issues that most investors regard as sacrosanct – could be removed.

“Investors jealously guard their pre-emption rights. If there is one way of infuriating the City, it is threatening to take them away,” says a corporate broker at a US investment bank.

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