IG?dismisses €25m case from Echelon

first_img Show Comments ▼ Share whatsapp BROKERS yesterday urged investors to take advantage of any fall in IG Group’s share price following the news that three former clients of bankrupt Scottish firm Echelon Wealth Management are suing the spread betting firm for more than €25m (£21.2m).Echelon, a Glasgow-based contracts for difference (CFD) broker which went into liquidation in October 2008, used IG group’s trading unit IG Markets to hedge its exposures. Clients of Echelon were covered by the Financial Services Compensation Scheme, which paid out losses up to £48,000. IG yesterday dismissed the claim as “speculative” and “without foundation” pledging to “defend itself vigorously.” It said it did not expect the case to have any material impact on the group.Brokers Numis and Panmure Gordon were equally dismissive of the case yesterday, reiterating their “buy” ratings and both suggesting investors capitalise on any share price weakness. “This is a speculative claim which may not even go to trial. Buy into any weakness following today’s news,” said Panmure Gordon analyst Vivek Raja. Numis analyst James Hamilton also said he expected the case to be dismissed without reaching court, but pointed that even if it did reach court that the cost was immaterial.“IG held £22m of cash balance as of 31.05.2010 and so a €25m loss would have next to no impact on the group. Any share price weakness should be seen as a buying opportunity,” he said.IG’s shares yesterday closed 1.3 per cent lower at 490.9p. KCS-content More From Our Partners Russell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comWhy people are finding dryer sheets in their mailboxesnypost.comSidney Crosby, Alex Ovechkin are graying and frayingnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comFeds seized 18 devices from Rudy Giuliani and his employees in April raidnypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comKiller drone ‘hunted down a human target’ without being told tonypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.com‘The Love Boat’ captain Gavin MacLeod dies at 90nypost.com whatsapp IG?dismisses €25m case from Echelon Tuesday 23 November 2010 8:57 pm Tags: NULLlast_img

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