pounds 6m bet sees 'the Spaniard' suspended.
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.
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|Publication:||The Birmingham Post (England)|
|Date:||Apr 22, 2002|
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