Conservative party treasurer Michael Spencer, whose family-owned financial business has a substantial shareholding in The Engine Group, is at the centre of a controversy concerning shares in public companies that were pledged to secure bank loans without informing the Stock Exchange.
Spencer acquired an 11% stake in Engine in 2007 through INCAP Finance BV which in turn is owned by a company called IPGL that is under Spencer's control.
The current controversy revolves around shares held by INCAP Finance BV in two public companies where Spencer is a director - the stockbroking business Numis Corporation and international money brokers ICAP. Apparently the pledging of shares in Numis had not been announced when it first occurred in January 2008 or when the arrangement was restructured in October.
In a statement issued on 23 December Numis said that IPGL and INCAP had taken legal advice at the time the shares were first pledged but that "in the wake of recent press reports on this issue in relation to other companies IPGL sought further advice and concluded that notification should have been made".
Engine's chief executive is Peter Scott and its best known marketing subsidiaries include WCRS, Partners Andrews Aldridge and the Mandate public relations business. Under Scott's leadership the group has expanded rapidly by acquisition, helped by private equity funding.
IPGL donated over £1 million to the Conservative Party in the year to 31 March 2007.
© Fintellect Ltd
Michael Spencer, owner of an investment company that acquired an 11% stake in The Engine Group in 2007
BOB WILLOTT
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