Rock investors call for judicial review on compensation
Shareholders claim Treasury valued Northern Rock poorly in order to avoid big pay outs
Northern Rock investors have accused the Treasury of manufacturing a low
valuation for failed bank Northern Rock in order to avoid paying fair
According to the FT, hedge fund SRM Global and the UK Shareholders
Association are planning to fight legislation that will value the Rock as if it
were in administration and so render their shares worthless.
The angry investors are planning to launch a judicial review next month to
determine if the government acted unlawfully when valuing shareholder pay-outs.
The shareholders believe the Rock’s book value means that they should receive
between £4 and £5 a share.
Northern Rock was eventually nationalised after the government propped it up
with extra liquidity.