ABN Amro censured for blurring advise and research
(20 April 2004 – New Zealand) ABN Amro has copped some flak for issuing research that increased the value of kiwi forest products company Tenon while at the same time advising it on a potential takeover bid from shareholder Rubicon, according to media reports.
New Zealand Society of Investment Professional president Simon Botherway said putting out research on a company at the same time as advising it was a tenuous matter.
He said best practice would be to disclose fully the nature of the advisory relationship and to say that a particular valuation was under review as opposed to changing it.
ABN Amro research chief James Miller responded by saying that the investment bank took Chinese Walls it placed between its research and corporate advisory departments very seriously.
Rubicon, which has forest and biotechnology assets, was formed following the splitting up of the Fletcher Challenge conglomerate in 2001. It said taking control of its single largest investment Tenon was a logical move.
He said best practice would be to disclose fully the nature of the advisory relationship and to say that a particular valuation was under review as opposed to changing it.
ABN Amro research chief James Miller responded by saying that the investment bank took Chinese Walls it placed between its research and corporate advisory departments very seriously.
Rubicon, which has forest and biotechnology assets, was formed following the splitting up of the Fletcher Challenge conglomerate in 2001. It said taking control of its single largest investment Tenon was a logical move.
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