Financial Times FT.com

Activist investors

Back-dating scandal groups at risk

By Francesco Guerrera, Brooke Masters and Daniel Pimlott in New York

Published: April 29 2007 22:11 | Last updated: April 29 2007 22:11

More than 40 US companies embroiled in the options back-dating scandal, including software makers McAfee and Novell, could be vulnerable to takeover by activist investors because of a side-effect of long-standing laws.

The new threat to some of the 140-plus companies involved in the options controversy comes at a time when cash-rich hedge funds and private equity groups are scouring the market for takeover targets.

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