Boesky drops the reins of British trust
The British investment trust chaired by Ivan Boesky said Monday he will resign as chairman and director. Mr. Boesky agreed last week to pay $100 million to settle civil charges that he had used inside information to profit on the stock market.
A statement by stockbrokers Seligman Harris in London and authorized by the Cambrian & General Securities investment trust said it had been surprised by the news about its chairman.
Cambrian, which in May managed about 377 million ($538 million) in assets, said it was consulting its advisers and was seeking clarification of Boesky's shareholding in the trust.
Boesky bought into Cambrian in 1982. At the end of 1985, he owned 5.4 million of the company's 45.6 million ordinary shares and 11.3 million of the 15.5 million capital shares.
Trading in Cambrian shares was suspended on the London Stock Exchange Monday with the ordinary shares at 1.30 ($1.86) and capital shares at 2.26 pounds ($3.23).
The London exchange also said trading in the bonds of two companies headed by Boesky had been suspended.