LONDON (Reuters) - London-based hedge fund Caius Capital on Monday said it was disappointed with the European Banking Authority’s rejection of its request to look into a complex debt instrument used by UniCredit (CRDI.MI) that the fund said was wrongly classified as core capital.
Caius in May asked the EBA to investigate the 2.98 billion euro (£2.65 billion) convertible and subordinated bond, known as CASHES, which was issued in 2008.
The EBA said on Friday that there was no clear evidence of a breach of Union law and that it had decided not to open a formal investigation.
“The EBA’s response does not address the substance of our serious allegations,” Caius said in a statement.
“We note that the EBA states that the issues we have raised may be dealt with more properly by other bodies or means. We look forward to pursuing these in order to bring the question of the CASHES eligibility to a close and to resolve lingering uncertainty for stakeholders.”
(This version of the story has been refiled to add dropped word to headline)
Reporting by Maiya Keidan; editing by Simon Jessop