Breeden European had declared a stake of 13 per cent, or 18m shares, at the start of July, fuelling talk of a break-up of the embattled firm.
A stock exchange filing yesterday showed Breeden disposed of 8m shares on Friday, the day Connaught said it would make a loss for the year.
Asset manager Toscafund and Norway’s national bank Norges have also disposed of large holdings in recent days as Connaught stock remained in the doldrums. Shares closed up 2.2p at 15.6p yesterday.
Breeden European could not be reached for comment.