08
Feb
2018

Investment Association says TalkTalk’s actions ignore core shareholders rights and investor interests

Thursday 08 February

Commenting on TalkTalk Telecom Group plc announcement this morning of a £200 million placing of ordinary shares representing 19.99% of existing issued share capital, a spokesperson for the Investment Association said:

“This placing on a non-pre-emptive basis ignores a fundamental shareholder right and a cornerstone of the UK capital raising system.

‘TalkTalk’s actions are a blatant disregard of the industry-accepted standards. At 19.99% it is double the accepted size, and goes against agreed industry guidelines which clearly sets out the mechanism and circumstances in which companies can carry out a non-pre-emptive issue.

‘Pre-emption rights are a vital shareholder protection and their misuse poses a serious threat to shareholder and investors’ interests - the UK’s pensioners and savers. Businesses have a duty to listen to their shareholders and this placing sets a very damaging precedent for market practices.”

For more information contact:

Victoria Jonson, Interim Head of Communications: [email protected]
T +44 (0)20 7269 4696

Helen Ayres, Media Relations Manager: [email protected]
T +44 (0)20 7269 4696, M +44 7508 724066

About The Investment Association:

  • The IA champions UK asset management, supporting British savers, investors and businesses. Our 250 members manage £6.9 trillion of assets and employ 93,500 people across the UK
  • Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
  • Our purpose is to ensure investment managers are in the best possible position to:
    • Build people’s resilience to financial adversity
    • Help people achieve their financial aspirations
    • Enable people to maintain a decent standard of living as they grow older
    • Contribute to economic growth through the efficient allocation of capital
  • The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
  • The UK is the second largest investment management centre in the world, after the US and manages 37% of all assets managed in Europe.

 

 

For further information, please contact:

For media, to receive the full consultation document, please contact Helen Ayres

Helen Ayres, Communications Manager: [email protected]

T +44 (0)20 7269 4620; M +44 (0)7508 724 066

IA press office: [email protected]

About the Investment Association (IA):

  • The IA champions UK asset management, supporting British savers, investors and businesses. Our 250 members manage £7.7 trillion of assets and the asset management industry supports 100,000 jobs across the UK.
  • Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
  • Our purpose is to ensure investment managers are in the best possible position to:
    • Build people’s resilience to financial adversity
    • Help people achieve their financial aspirations
    • Enable people to maintain a decent standard of living as they grow older
    • Contribute to economic growth through the efficient allocation of capital.
  • The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
  • The UK is the second largest investment management centre in the world, after the US and manages 35% of all assets managed in Europe.