Monday 23 October 2017

Alternative plans to save Anglo bank

FIVE separate plans to save Anglo Irish Bank failed before the Maple 10 investors were chosen for the loan for shares deal, the Circuit Criminal Court has heard.

1 Project Sleeve: Where the bank would extend the rights issue to existing shareholders, giving bank customers priority to buy the new shares.

Senior Counsel Michael O'Higgins, representing Sean FitzPatrick, said this would have created more shares in the bank and diluted the CFD holdings.

2 Operation Dribble: Presented/promoted by Morgan Stanley, the international financial advisers devised a mathematical calculation where the bank could sell so many shares into the market without destabilising the share price.

Mr O'Higgins claimed that this offer was put to the Quinns but they "wouldn't play ball".

3 Sovereign investment: In early April 2008, a number of senior Anglo executives travelled to the Middle East in a bid to win investment.

Mr O'Higgins said there was some level of optimism about this prospect.

4 USA: In June 2008, former Anglo chief executive David Drumm was in the US where he made an "optimistic" call about securing investment from Bain Capital, the investment firm founded by former US presidential candidate Mitt Romney.

It fell through that July, the Circuit Criminal Court heard.

5 Rabobank: A final option was a reverse takeover by Rabobank, the owner of ACC Bank, with senior representatives from both banks meeting in Holland as late as July 10.

Four days later, on July 14, 2008, the transactions for the Maple 10 investors were executed.

Irish Independent

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