People like Paul Singer don’t always enjoy the warmest reception abroad when they pack their particular brand of investing—that of the activist variety—in their carry ons. His Elliott Management has already had its run-ins with the French authorities. And now, as if to warn him and his ilk, who increasingly have their eye on the famously efficient and not-at-all bureaucratic French corporate establishment, he’s had another.
At the heart of the case are regulatory declarations Elliott made as it was building a derivatives position in Norbert Dentressangle, a transport company. French investigators say Elliott’s filings indicated it had acquired contracts for difference when it had actually bought equity swaps…. Elliott — which subsequently acquired about 9% of Norbert Dentressangle shares — was also accused of failing to quickly flag its intention not to tender into XPO’s 2015 offer….
“Elliott knowingly tried to conceal its strategy,” said Audrey Micouleau, the AMF official who spoke on behalf of investigators. She accused Elliott of obstructing the probe and recommended a 15 million-euro fine for Elliott Advisors UK Ltd. and an additional penalty of 5 million euros for Elliott Capital Advisors LP in relation to the three alleged infringements.