On Monday, HSBC’s (HSBA.L) most prominent activist shareholder Ken Lui claimed he had spoken for the first time with Ping An, the bank’s largest investor, about their controversial plans to spin off the lender’s Asia unit.
In an interview with Reuters on Monday, Lui said Ping An Asset Management’s top management executives discussed the suggestions with him and reiterated their support.
Ping An and Lui, supported by thousands of tiny shareholders in Hong Kong, HSBC’s largest market met for the first time.
The meeting occurred after shareholder advisory organization ISS advised HSBC investors to vote against a Ping An-supported resolution for the bank to investigate strategic options such as a spinoff of its Asia division.
In a note to investors obtained by Reuters, ISS claimed the idea, which the bank and Chinese insurer have been fighting over since April, “lacks detailed rationale.”
Last week, HSBC and Ping An increased their war of words ahead of the bank’s annual general meeting (AGM) on May 5, where shareholders will vote on proposals like spinning off its Asia unit and forcing dividend increases.
After Glass Lewis on Tuesday, ISS, which advises shareholders on proxy voting at investor meetings, sided with HSBC.
Ping An accused the bank of not hearing its strategic proposals on Friday. HSBC said it had discussed the plans 20 times but always maintained they would destroy shareholder value and be too expensive.
Lui claimed Ping An would not be consulted before the May 5 vote.
A Ping, An spokeswoman, confirmed the virtual meeting but declined to elaborate on the talks.
Lui planned to speak with five more HSBC institutional shareholders to gain their support.
Only Ping An has publicly backed the proposals.
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