LONDON (Reuters) - U.S. activist investor Knight Vinke has won some support for its call for change at HSBC Holdings, with a major fund manager and private shareholder lobby group saying the issues should be addressed.
New Star Asset Management, which owns just under 300 million pounds of shares, or about 0.3 percent, of Europe's biggest bank, said it supported the discussion about how HSBC (HSBA.L: Quote, Profile , Research) can revive its underperforming share price.
The UK Shareholders' Association (UKSA), a private shareholder lobby group, also said it supported Knight Vinke's concerns and urged HSBC to respond publicly.
Knight Vinke this week stepped up its attack on HSBC and said it should consider "radical solutions" such as a merger or completely exiting investment banking.
"We support the criticism about the poor share price performance of the last few years and are open to consider anything that could improve the share price performance," said Guy de Blonay, fund manager at New Star.
New Star has recently met Knight Vinke and HSBC's management, including Chief Executive Michael Geoghegan. De Blonay welcomed the increased focus on strategy, but said the fund manager had not yet decided whether to support Knight Vinke's campaign.
"As a result of this debate, shareholders should expect an improving news flow that should support the share price going forward," he said.
UKSA said it had studied Knight Vinke's report and said HSBC has "some legitimate questions to answer" about performance and strategy. It was unable to say how many HSBC shares its members held.
Major HSBC shareholders have been reluctant to comment on the proposals, but several have said HSBC has already shifted strategy and is addressing its underperformance.
HSBC has rejected the calls from Knight Vinke, saying it is already increasing its focus on Asia and other emerging markets.
Knight Vinke is backed by California state pension fund CalPERS and has also won support from the California State Teachers' Retirement System (CalSTRS), which owns HSBC shares worth $268 million (180 million pounds).
