What a plonker! I'm so glad Ashley & Kemsley are not running our famous club.
----------------------------
Mike Ashley scores own goal with HBOS
Mike Ashley, the maverick retailer who owns Newcastle Football Club, has made a thumping multi-million-pound loss on a bet on HBOS bank.
The tycoon, who netted £929m from 2007's float of retailer Sports Direct, is thought to have placed a series of wagers late last year with spread betting group IG Index that HBOS shares would rise in the first part of 2008.
However, HBOS shares have been whacked by the credit crisis and Mr Ashley's bet was hit particularly hard by last Thursday's 17pc slump following unfounded rumours that the bank was facing a liquidity crisis.
Sources close to the situation admitted that Mr Ashley, deputy chairman of Sports Direct, had lost tens of millions. A spokesman for him declined to comment on reports that he was £129m out of pocket on the bet.
While not renowned for his spread betting activities, Mr Ashley is known for using contracts for differences to build big stakes in sportswear groups. His investments in Adidas, Finnish sportswear company Amer and Umbro have realised a profit, but he is nursing chunky losses on his 29.4pc stake in Blacks Leisure.
HBOS yesterday confirmed that board members had spent more than £6m buying shares to shore up confidence in the bank. Chief executive Andy Hornby spent over £400,000 buying 92,800 shares at 446¼p. Non-executive Charles Dunstone, the chief executive of Carphone Warehouse, spent almost £450,000 buying shares.
Meanwhile, the Financial Services Authority launched a probe into "rogue traders" behind the aggressive shorting of the stock. More than 160m shares were traded in a single day compared with an average 54m. One trader is thought to have made £100m.
HBOS has launched its own inquiry and chairman Lord Stevenson has made an informal approach to City veteran Richard Wyatt to ask for his help in the investigation. Mr Wyatt, 48, has more than 25 years' experience in the UK equities market, having set up Schroders Securities in 1996, later sold to Citigroup.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/24/cnash124.xml
----------------------------
Mike Ashley scores own goal with HBOS
Mike Ashley, the maverick retailer who owns Newcastle Football Club, has made a thumping multi-million-pound loss on a bet on HBOS bank.
The tycoon, who netted £929m from 2007's float of retailer Sports Direct, is thought to have placed a series of wagers late last year with spread betting group IG Index that HBOS shares would rise in the first part of 2008.
However, HBOS shares have been whacked by the credit crisis and Mr Ashley's bet was hit particularly hard by last Thursday's 17pc slump following unfounded rumours that the bank was facing a liquidity crisis.
Sources close to the situation admitted that Mr Ashley, deputy chairman of Sports Direct, had lost tens of millions. A spokesman for him declined to comment on reports that he was £129m out of pocket on the bet.
While not renowned for his spread betting activities, Mr Ashley is known for using contracts for differences to build big stakes in sportswear groups. His investments in Adidas, Finnish sportswear company Amer and Umbro have realised a profit, but he is nursing chunky losses on his 29.4pc stake in Blacks Leisure.
HBOS yesterday confirmed that board members had spent more than £6m buying shares to shore up confidence in the bank. Chief executive Andy Hornby spent over £400,000 buying 92,800 shares at 446¼p. Non-executive Charles Dunstone, the chief executive of Carphone Warehouse, spent almost £450,000 buying shares.
Meanwhile, the Financial Services Authority launched a probe into "rogue traders" behind the aggressive shorting of the stock. More than 160m shares were traded in a single day compared with an average 54m. One trader is thought to have made £100m.
HBOS has launched its own inquiry and chairman Lord Stevenson has made an informal approach to City veteran Richard Wyatt to ask for his help in the investigation. Mr Wyatt, 48, has more than 25 years' experience in the UK equities market, having set up Schroders Securities in 1996, later sold to Citigroup.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/24/cnash124.xml
