Australian fund manager Monterrey Investment Management has apologised to the United Kingdom's Takeover Panel following a breach of the regulator's disclosure rules.
The Melbourne-based manager, which specialises in the Australian merger arbitrage market, was censured by the regulator following its failure to properly disclose dealings with two UK companies.
Monterrey purchased holdings in healthcare software companies, iSOFT and IBA Health without disclosing that information in a timely manner, the regulator said.
Monterrey has explained to the Takeover Panel that its failure to comply with regulations was attributable to its lack of familiarity with the relevant provisions of the regulator's code and absence of compliance staff for some of the relevant period.
The Takeover Panel concluded that Monterrey's action constituted a serious breach of the code.
It said if the fund manager was in any doubt as to the applicable disclosure requirements, it should have sought appropriate advice before acquiring significant shareholdings in iSOFT and IBA.
"The fact that Monterrey is a professional investor, specialising in merger arbitrage activities, in the Panel Executive's opinion, it should therefore have been especially aware that dealing in securities of an offeree company and an offeror might be subject to disclosure obligations." the Takeover Panel said in its findings.
Monterrey has apologised unreservedly to the Takeover Panel for its failure to comply with the regulation.
"Monterrey has cooperated fully with the Panel Executive throughout its investigation and has told the Panel Executive that it will be introducing new procedures with a view to ensuring that it will not commit any similar breaches in the future," the Takeover Panel said in its finding.
Monterrey is only the second financial services group in two and a half years to be publicly criticised by the UK Takeover Panel.
