Hedge Fund Elliott Starts Legal Proceedings Against Bank of East Asia

   By Joanne Chiu 
 

Bank of East Asia Ltd. (0023.HK) said Monday it would vigorously oppose a petition filed by U.S. activist hedge fund Elliott Management Corp., which seeks to scrap any agreements the bank has made with major shareholders that limit their ability to freely sell shares.

The hedge fund, which has a roughly 7% stake in the Bank of East Asia, has been pushing the bank to sell itself.

Bank of East Asia, one of Hong Kong's largest family-controlled banks, said it received an "unfair prejudice petition" presented by Elliott International L.P., The Liverpool L.P. and their affiliated entities to the city's high court. The first hearing of the petition has been scheduled for Sept. 21.

The bank said the petition won't have any material adverse impact on its business and operations.

Bank of East Asia, which is run by the family of Chairman David Li, has been taken to task by Elliott over management issues. The bank has dismissed Elliott's push to sell it as "short-term focused."

Write to Joanne Chiu at [e-mail]

(END) Dow Jones Newswires

July 18, 2016 08:30 ET (12:30 GMT)

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