LONDON( Reuters)- HSBC’s most oral individual activist shareholder Ken Lui on Monday said he’d spoken for the first time with the bank’s largest investor, Ping An, about their controversial proffers to spin off the lender’s Asia business.
Top operation directors of Ping An Asset Management, an investment unit of the Chinese insurer, changed views on the proffers with Lui and reaffirmed its support, Lui told Reuters in an interview on Monday.
The addresses were the first sanctioned engagement between Ping An and Lui, who’s backed by thousands of small shareholders in Hong Kong, HSBC’s largest request.
The meeting came after shareholder premonitory group ISS said HSBC investors should bounce against a resolution supported by Ping An calling on the bank to consider strategic options including a derivation of its Asia business.
The offer, over which the bank and the Chinese insurer have been arguing since last April,” lacks detailed explanation”, ISS said in a note to investors seen by Reuters.
The war of words between HSBC and Ping An escalated last week ahead of the bank’s periodic general meeting( AGM) on May 5, at which shareholders will bounce on proffers including a strategic review to spin off its Asia business and whether the bank should be forced to boost tips.
ISS, which advises shareholders on how to apply their deputy votes at companies’ investor meetings, came the alternate major similar group to side with HSBC on the issue, after Glass Lewis on Tuesday likewise said the Ping An- backed plan demanded merit.
Ping An on Friday indicted the bank of not giving its strategic ideas a sufficient hail. HSBC has said it had bandied the plans on around 20 occasions, but had constantly said they would destroy shareholder value and would be too expensive to apply.
Lui said there was no plan to coordinate with Ping An in the days leading up to the May 5 vote.
A prophet for Ping An verified the virtual meeting but declined to note on details of the addresses.
Lui said he was lining up meetings with another five large institutional shareholders of HSBC to win their support.
So far, no institutions other than Ping An have intimately supported the proffers.
