Rock shareholders lose valuation review
High Court shoots down attempt to have terms of BDO's Northern Rock valuation redrawn
Powerful Northern Rock shareholders have lost a court battle to have the
rules governing BDO’s valuation of Northern Rock radically altered.
Hedge funds SRM Global and RAB Capital argued Northern Rock should be treated
as if it were unable to continue as a going concern and not in administration
before the government bailed it out, but a High Court judicial review rejected
the claim today.
Earlier this month Roger Lawson, chairman of the Northern Rock Shareholders
Action Group, which had backed the hedge funds’ efforts, said: ‘The terms are
based on totally artificial assumptions. The government is looking to gain a
thrifty valuation which benefits them and screws the shareholders.’
has been paid a flat fee of £4.5m to put a price on Northern Rock.
Valuations expert Andrew Caldwell is spearheading the firm’s efforts.