Does the end of gentlemanly capitalism really matter?

Blue chips Barclays and Vodafone have both been badly bruised by run-ins with activist investors. But does the City's old guard have a right to complain?

A few years ago, a former investment banker called Philip Augur wrote a book titled The Death of Gentlemanly Capitalism. It struck a chord with many in the City who lamented the passing of the civilised old ways of the Square Mile, before the big US banks imposed the new culture of early starts, sandwich lunches and bottled water, and when the motto of the City was "my word is my bond", rather than "caveat emptor". There is a whiff of this nostalgia around the City again today this time directed at activist investors rather than hard-driving US investment banks. The old guard are up in arms, accusing aggressive newcomers of bad manners and a lack of respect.

At one level, it's hard to disagree. Last week, two of Britain's biggest firms were ambushed by activists both were badly bruised by the experience. Vodafone's bosses deeply resented their treatment at the hands of John Mayo, the former Marconi finance director who has re-invented himself as an activist. Arun Sarin, CEO of the mobile phone group, had offered to meet Mayo, but, on the day of the meeting, was startled to find Mayo's complaints plastered all over the front page of the FT. At least Atticus, another activist, had the courtesy to turn up to a meeting with bosses at Barclays before going public with its demand that the UK bank drop its bid for ABN Amro. But Barclays complained afterwards that the meeting lasted half an hour and Atticus refused to debate its views.

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Simon Nixon

Simon is the chief leader writer and columnist at The Times and previous to that, he was at The Wall Street Journal for 9 years as the chief European commentator. Simon also wrote for Reuters Breakingviews as the Executive Editor earlier in his career. Simon covers personal finance topics such as property, the economy and other areas for example stockmarkets and funds.