Printer Friendly

pounds 6m bet sees 'the Spaniard' suspended.

A City broker known as The Spaniard has been suspended from his job pending an inquiry into a controversial pounds 6 million spread bet.

Nigel Howe, of stockbroking firm Gilbert Eliott, has been linked to Paul Davidson, a pipefitter turned multi-millionaire known as The Plumber, who placed the bet on the share price of biotech firm Cyprotex.

Mr Howe acted as broker on Cyprotex's February flotation.

Concerns have been raised because City Index, who took the bet before the firm listed, hedged their risk by getting investment bank Dresdner Kleinwort Wasserstein to invest in the company, known as a 'contract of difference'.

Hedging is not unusual among spread betting firms, especially on bets of this size.

The worry is that while potential investors will be aware DKW owns shares in Cyprotex - DKW was listed in the float prospectus as an investor - they will not know they were bought simply to cover a bet.

DKW currently owns 19.7 per cent of the company after buying 750,000 shares. Cyprotex has a market value of pounds 26.2 million, making DKW's stake worth pounds 5.16 million.
COPYRIGHT 2002 Birmingham Post & Mail Ltd
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2002 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Business
Publication:The Birmingham Post (England)
Geographic Code:4EUGE
Date:Apr 22, 2002
Previous Article:Ahead of analysts' forecasts.
Next Article:Saville breathes life into plant.

Related Articles
Stanley's new tax plea despite record profits.
Ladbrokes' shop turnover rises 40% in tax-free era; Company profits up 23% as e-gaming makes big strides.
pounds 6m bet sees 'the Spaniard' suspended.
Chips are down at Crockfords but other tables are turning.
High rollers dent Stanley's profits.
Stanley's yearly results the latest to trumpet the success of FOBTs.
Commission suspends betting firm's licence.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters