The UK-based global financial services group, HSBC, which issued its first ever profits warning last year, has found itself under the scanner targeted by US activist investor group Knight Vinke Asset Management, which has forced structural changes in other companies.

US bad debts had forced HSBC to issue its first profits warning last year and earmark £1.7 billion to cover the bad loans and made changes to the management of its US unit.

The group has been in contact with HSBC for several months after writing to its chairman on 25 May, asking for a "fundamental review" of its strategy and structure. On 12 June, Knight Vinke met with the group''s finance director, before writing to the full board to request the review on 4 September.

The letter "also raised a number of important governance-related concerns and asked that the board consider these as part of the review," the group revealed.

Though the group owns less than 1 per cent of HSBC, it has a record of persuading other investors to support its campaigns.

For instance, in 2004 it successfully persuaded Royal Dutch Shell to abandon its dual British-Dutch corporate structure despite owning only 0.03 per cent of its shares, and in 2005, it led a campaign opposing Dutch publisher VNU''s $7- billion acquisition of IMS Health.