The dispute between Knight Vinke and HSBC escalated yesterday after the activist investor launched a scathing attack on the bank’s latest overseas expansion.

HSBC yesterday announced Vietnam’s largest insurance deal, snapping up a 10 per cent stake in Bao Viet, the country’s biggest insurer.

Under the terms of the $255 million (£126 million) deal, HSBC will be able to increase its stake to 25 per cent within five years.

Stephen Green, HSBC’s executive chairman, said that the acquisition was part of the bank’s strategy of investing in “high-growth markets with international connections”.

However, Knight Vinke said that the deal would “do nothing to add shareholder value”.

It was another example of HSBC’s failed strategy of building “a portfolio of standalone businesses that cannot be integrated into a coherent whole”, the fund manager said.

Eric Knight, head of Knight Vinke, last Thursday launched an assault on HSBC, criticising the bank’s remuneration policy and its move away from emerging markets.

He called for an independent review of HSBC strategy.

The investor said yesterday that it had secured meetings with 20 HSBC shareholders.

A fund manager at one of HSBC’s top-ten shareholders told The Times that he was “more than happy” to meet Mr Knight.

“We ought to listen to what he’s got to say,” the manager said.

However, other large fund managers said that the points raised by Knight Vinke were ones that investors had already discussed with HSBC.

“We don’t think there’s any need for a formal strategic review,” one said.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive