Hedge fund makes pitch for Quintain

Quintain is developing thousands of homes in Wembley
Quintain is developing thousands of homes in Wembley

An aggressive activist hedge fund has gatecrashed Lone Star’s proposed £700 million takeover of Quintain, claiming that the offer “substantially undervalues” the property developer.

In a move that could derail the takeover of the property group, which is developing large tracts of land in Wembley, west London, Elliott Capital Advisers has taken control of nearly 68 million shares using a controversial contracts-for-difference arrangement.

Elliott’s position is equivalent to a 12.9 per cent holding in Quintain and was secured at 130½p to 131½p a share.

A contract for difference is a method of taking control of shares, and their voting rights, without paying their full price. The investor takes a contract to buy the shares over a given period and if the shares rise they may