Business World

Tuesday 17 October 2017

In Brief: Agar may access legal documents

BUSINESSMAN David Agar is entitled to access legal documents in which his former business partner and close friend made serious allegations against him, a High Court judge has ruled.

George Tracey made the allegations concerning misappropriation of funds when unsuccessfully opposing a claim by AIB for summary judgment orders for €18m against him arising from various loans. Mr Agar, who was not a party in that case, emphatically rejected the allegations, Mr Justice Gerard Hogan said yesterday.

Bankia shares cut to just one cent

Spain has cut the nominal value of shares in rescued lender Bankia to one cent, down from €2 each in a debt swap that will practically wipe out existing stockholders in the nationalised lender.

Holding company BFA will own about 7pc of Bankia following a €15.5bn recapitalisation approved by the Spanish rescue fund. Investors who bought subordinated debt or preferred shares will end up with about 30pc of the bank's stock. Spain's bank rescue fund fixed the price as the basis for converting €4.8bn of securities including preferred shares and €10.7bn of so-called contingent convertible bonds into stock as part of the rescue of the bank.

Schroders looking to buy Cazenove

Europe's biggest publicly traded money manager, Schroders, is in talks to buy investment business Cazenove Capital, which has £18.7bn (€21.9bn) in assets. Schroders is thought to have £1.14bn of surplus capital for acquisition purposes.

The combination of Schroders and Cazenove Capital would bring together two of London's oldest firms, who can trace their histories back to the 19th Century.

BP will buy $8bn of own shares

BP will buy back $8bn (€6bn) of shares from investors after completing the sale of 50pc of Russian oil producer TNK-BP.

BP's first buyback since 2008 will return the original amount invested in the venture 10 years ago. The sum is twice as much as chief financial officer Brian Gilvary signalled last year would be enough to offset earnings lost from selling the stake in Russia's third-largest producer. BP shares have slumped since the 2010 Gulf of Mexico oil spill, and the company faces fines after a trial in New Orleans. "This shows confidence for BP," said analyst Iain Reid. "It makes them more shareholder-friendly, but I don't think they'll recover until the trial is over."

Irish Independent

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