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Will the David Ross situation indirectly affect Lowe's position and ultimately SLH?


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WH Ireland investor quits Carphone after breaching FSA rules


David Ross, one of a consortium of new investors at Manchester-based stockbroking firm WH Ireland, today quit the board of the Carphone Warehouse, which he co-founded.


His departure was prompted by the admission that he failed to declare the use of 136.4m of the company’s shares as collateral for personal loans.


Ross used the shares in this way over the past two years but only told the company yesterday, despite Financial Services Authority rules which say such moves must be declared.


He said he was up to date with payments on the loans and added that he had no intention of selling his 20 per cent stake in Carphone. Despite this, the shares slid 5 per cent today.


Ross set up the company with old school friend Charles Dunstone, Carphone’s chief executive. Dunstone said his failure to declare was “an oversight” and described his resignation from the board as “a sad occasion”.


Ross is one of a group of investors, including former Conservative Party treasurer Lord Marland and JJB Sports founder David Whelan, who have built up a 27 per cent stake in WH Ireland after first acquiring shares in May.



How far down the domino trail is SLH?

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I alluded to this yesterday. There could be a domino effect, R, as the guy has loans secured against his shares.


His shares have fallen in value since a) he put them up as collateral for the loans and b) since the announcement was made yesterday.


He might, therefore, have to sell other assets (including shares in WHI) and there's a chance maybe that he has other loans secured against other shareholdings?


I think it was established yesterday that one of Rupey's companies has gone to the wall. I don't imagine WHI will, although hedge fund managers and stockbrokers are feeling the pinch big stylee, but what does it say about WHI when one of its major investors doesn't 'know' the rules of the stock market (allegedly).

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I'm surprised you hadn't noticed that the rich list guys are trying to off-load football clubs in a panic. Surely this can only be because they know what's coming next.


The reason they are rich and we are not is because they have bloody good intelligence on what is happening and being discussed in City corridors. If they are panicking to get out there must be a VERY BIG reason.


Ergo, nobody but nobody of any substance will be looking to invest in football clubs. I'm afraid it is not official yet but the football bubble has burst.


To his credit, I think Lowe is aware of that. He looks glum 'cos he has realised that there is no easy way out for him and more importantly all the money he invested in shares, that has gone down the swannee. Hence his comment about the 'bonfire of the vanities' (£5 & £10 notes etc. in your language). As always these people are subject to Fruedian-isms when they quote examples.


Alas, even our 'working class' heroes like Patrick Trant & Leon Crouch are financial victims but at least their reputations will be relatively intact when we go into administration whereas the captain will go down with the ship in City terms...


"Whasaat old Boy, failed to stop your little shebang going into administartion?


Hrumph!.... we'll let you know"

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