DIRECTORS at HBOS increased their holdings in the bank after rumours that it was in need of emergency funding sent the share price sharply downwards. Non-executive director Charles Dunstone, who is also chief executive of the Carphone Warehouse Group, bought 100,000 shares at 446.48p each.

Executive directors and the group’s top 250 senior managers also acquired around 1.3m shares at 446.25p a share, using their respective net cash bonus entitlements under the HBOS annual bonus plan.

Shares in the bank fell sharply on March 19 after rumours that it had asked for additional funding from the Bank of England. However, HBOS said it had an “exceptionally strong balance sheet” and continued to access wholesale funding when it needed to.

The Financial Services Authority, the City watchdog, responded by saying it was looking into allegations of potential market abuse.

HBOS warned in its 2007 results last month that fierce competition in the mortgage market and higher funding costs had squeezed margins and could get worse. It said it had suffered a decline in net profits in the second half of 2007 as the credit crunch took its toll.

SPORTINGBET’S chairman Peter Dicks lifted his stake in the online betting company by more than half on Thursday, spending nearly £50,000 on shares. He took 119,000 shares at 38.5p each, taking his holding to 339,440 shares.

Sportingbet said this month that it had moved back into profit after being hit by the online gaming ban in America that in effect wiped out 75% of its business. Dicks rejoined the board as chairman in February having resigned in September 2006 after being arrested in New York. Customs officials had seen his name on an arrest warrant from the state of Louisiana.

The charges, relating to the ban on online gambling, were dropped in March last year.

Directors have in-depth knowledge of their businesses, so it can pay to track their moves. Every week Digitallook.comreveals the bosses who have bought or sold big stakes

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