UBS quits role in Darktrace listing over Mike Lynch links
UBS has quit its role in the upcoming £4bn flotation of Darktrace, the UK tech firm, over its links to British entrepreneur Mike Lynch, who is facing fraud charges in the US.
The Swiss bank has informed Darktrace that it can not work on the cybersecurity firm’s initial public offering (IPO), according to Sky News.
UBS was appointed alongside Jefferies in November to lead the IPO, which is expected to be one of the biggest London listings of the year.
However its compliance department reportedly decided it could not file the Suspicious Activity Reports (SAR) required, due to Lynch’s connection to the firm.
Lynch, who last week appeared in court to fight his extradition to the US, is the founder of Autonomy and was the first shareholder in Darktrace through his investment firm Invoke Capita.
He has been battling legal claims over an alleged fraud connected to the 2011 sale of Autonomy to Hewlett Packard.
Sky News reported that UBS’s decision was influenced by a Dutch court’s ruling that Ralph Hamers, its new boss, should be probed in connection to a money-laundering scandal at ING.
The bank’s resignation is “a UBS issue, not a Darktrace issue”, the broadcaster reported, citing sources close to the tech firm.
The IPO, which will now be led by Jefferies, remains on track, Sky said.