As we noted on 29 December, ARC Capital has been requisitioned by a party connected to its fund manager. PAG Holdings owns just over 50% of ARC’s shares but hasn’t announced a bid for the company despite ARC adopting the Takeover Code (which would normally force anyone owning more than 30% to bid for the company). ARC is suing its former manager, ARC Capital Partners Limited (a company connected with PAG Holdings), for RMB480m (c$77m). Advisers to the company have speculated that acquiring a controlling stake in ARC Capital, changing the Board and cancelling the litigation would work out a lot cheaper for PAG than losing the litigation. We would imagine that the company will be approaching the Takeover Panel for clarification about what will happen in respect of PAG making a mandatory bid. Watch this space!
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