August 1: The Financial Services Authority has published formal details of its £750,000 fines for market abuse against Philippe Jabre, GLG’s star hedge fund manager, and GLG itself. The regulator has helpfully provided 36 pages of explanation of how it reached its decision and the evidence. In paragraph 3.43(3), the FSA says: “Nothing in either conversation [with a Goldman Sachs salesman] or in both taken together gave ground for Mr Jabre to consider that he had carte blanche to get ahead and pre-hedge the new issue in advance of its announcement.” But don’t bother reading all 36 pages yourself: we’ll do the work for you and say what it all means for hedge funds, banks, Mr Jabre and the FSA tomorrow. The FSA estimates that the trades that cost Mr Jabre his career made a profit for GLG’s Market Neutral Fund of about $500,000, of which GLG’s share would have been $92,000.
More news today in the gambling sector. William Hill has published strong interim results, thanks in part to the World Cup. We also have more on Tom Braithwaite’s story this morning about the decision by Continent 8 Technologies, which provides internet infrastructure to online gaming companies, to cancel its float. Gambling-Law-US.com is full of details of how to get an online gambling licence and what it should cost. And if you go back to yesterday’s blog, you’ll find a couple of places for good discussions about the regulation of online gambling in the US and the implications of the BetonSports case in particular.
This is also a big results day. In addition to William Hill, we have interim figures from HBOS (the first under chief executive Andy Hornby; good but dull), great first quarter profits from Ryanair (Lex thinks it is time for a special dividend), plus strong first half results from George Wimpey and Travis Perkins.
McCarthy & Stone, the retirement homes builder, has, as expected, received a bid from a consortium which includes the Reuben brothers, Sir Tom Hunter and HBOS which trumps last week’s from Barclays and Permira. The bid is worth £10.75 a share in cash versus £10.30 for the earlier one, which McCarthy & Stone says it is no longer recommending.