Friday 26 December 2014

How Quinn secretly built up and hid his CFD shareholdings

Published 19/07/2014 | 02:30

Anglo Irish Bank
Anglo Irish Bank
Sean Quinn

Sean Quinn quietly built up his shareholding in Anglo Irish Bank using obscure channels, known as Contracts For Difference (CFDs) – a commitment to buy shares at a fixed price in future.

However, the bank could not confirm his shareholding because of the nature of the instrument he used and his name never appeared on the share register, as the holding does not have to be declared.

He built up the position over a three to four-year period:

2005 – 8,945,000 share purchases

2006 – 53,698,080 share purchases

2007 – 128,945,640 share purchases

2008 – 24,211,819 share purchases

Total – 215,810,539 share purchases

The average cost per share is believed to have been €14. Mr Quinn used nine different institutions to build up the shareholding, to ensure the CFD providers were not aware of the extent of his interest:

Cantor: 9,349,135 shares – 1%

Davys: 7,095,000 shares – 1%

IG Innex: 24,9045,000 shares – 3%

Bear Stearns: 30,000,000 shares – 4%

Credit Suisse: 46,897,074 shares – 6%

Merrill Lynch: 15,904,459 shares – 2%

Lehman: 39,643,178 shares – 5%

Dresdner: 10,759,111 shares – 2%

Morgan Stanley: 32,257,782 shares – 4%

Total: 215,810,539 shares – 28%

Irish Independent

Promoted articles

Read More

Promoted articles

Editor's Choice

Also in Irish News