SCOTLAND MANOEUVRES FOR ACTION
A sense of apprehension mingles uneasily with the scent of opportunity as the Scottish financial community ponders its role in the revolution in UK securities markets.
These fears have long, deep roots. They stretch back to 1977 when the UK National Coal Board and British Rail pension funds staged successful raids on two leading Scottish investment trusts; and, more importantly, to 1981, when the Royal Bank of Scotland, planning a merger with Standard Chartered, found itself on the receiving end of a rival and hostile bid from Hongkong and Shanghai Bank. Only a Monopolies Commission inquiry, which vetoed both bids, left the Royal with its independence intact.
A lengthening string of Scottish companies has fallen prey to corporate raiders since the start of 1985, including big names like House of Fraser, Distillers and Coats Patons. Others include Arthur Bell, Yarrow and Don Brothers. The ranks of Scottish quoted companies are now below a hundred-strong and shrinking fast.
The financial industry in Scotland has offered up its share of victims. Among investment trusts, where Scottish houses manage more than a third of total UK funds, Aberdeen has seen its last two trusts unitized.