In the late 1990s, there were a handful of arbitrageurs operating in the sector who primarily target...
In the late 1990s, there were a handful of arbitrageurs operating in the sector who primarily targeted the large Global investment trusts, leading to the wind-up of funds such as Overseas IT, Kleinwort Overseas and Dunedin Worldwide. The introduction of share buybacks/tenders after ACT was abolished in April 1999 enabled investment trusts to buy out the arbitrageurs and remove the overhang of stock from institutions. This made it hard to build a sizeable stake, and liquidity was reduced by the withdrawal of several investment banks from market-making in the sector. As markets improved, p...
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