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31 July 2005
Priests Are Shocked By Unholy
Share Bet
A
trust for infirm clergy and an Oxford college are among the
institutions that have profited from Party Gaming's soaring
share price.
St Hilda's College and the
Secular Clergy Common Fund have banked returns of up to 50%
by backing the controversial company.
Both institutions were
listed as holders of shares in the group shortly after it
floated — but five weeks later they appear to have sold
out.
Although the investment
has proved very profitable, it may anger religious groups
and student leaders who raised concerns about the company's
flotation.
The Secular Clergy Common
Fund, a charity for ill and infirm Roman Catholic priests,
bought shares in the internet poker group despite an ethical
investment policy banning it from buying shares in gambling
companies.
HSBC, which manages the
charity's investments, bought 22,403 shares on behalf of the
the fund.
This weekend, Michael
O'Shea, who runs the charity, described the investment as an
"error of judgment". He added: "As a Catholic charity, we
can't be seen to be involved (with Party Gaming). It's not
ethical is it, really? It was only for such a short time. We
pulled out very quickly."
O'Shea declined to comment
on how the charity had come to invest in the stock or how
much profit it had made.
HSBC also manages
investments for the women-only St Hilda's College, which
bought 24,796 shares in Party Gaming when the company
floated.
A spokesman for the
college's vice-principal, Janet Howarth, said that the
selection of shares was left entirely to asset managers who
acted on behalf of the institution.
"The college has a
socially responsible investment policy, which was agreed by
the fellows of the college after discussion with student
representatives," she said.
However, HSBC insisted
that the group would never "invest in a company outside the
parameters agreed with our clients."
Until now, Party Gaming's
institutional shareholders have remained in the shadows
because stock-market rules only require shareholders to
declare stakes in companies when they exceed 3%.
However, The Sunday Times
has obtained a copy of Party Gaming's shareholder register,
although many remain hidden behind nominee
accounts.
Party Gaming was attacked
by both the Salvation Army and the National Union of
Students (NUS) ahead of its float.
The NUS branded online
gambling "a very dangerous way to supplement income which
could result in great financial loss."
Meanwhile, the race to win
the next national lottery licence moved a step forward this
weekend when the industry regulator outlined plans for a new
bidding process.
Responding to submissions
from companies including supermarket group Tesco, Gala, the
gaming firm, and international lottery operators, the
National Lottery Commission said it could consider paying
bidders' costs in an attempt to drive competition for the
licence, which begins in 2009 and is expected to last for 15
years.
Sir Richard Branson, who
had vowed never to bid for the lottery licence again after
controversially losing out five years ago, is understood to
be keeping a close eye on regulatory developments and is
said by one person close to him to be "more likely than not"
to bid again. Branson, however, would distance any bid from
his Virgin Group, and would again pledge to run the lottery
as a not-for-profit venture.
Play
Online Poker At Party Poker - Click Here
Related pages:
Pressure
Grows To Cut Party Gaming Price
Again
Party
Gaming Flotation 'Fully Subscribed'
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