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Daily Insurance Industry News
Sunday 19th of August 2018
June 26, 2008

Amber top for B&B rights issue

by Richard Kilner

Story link: Amber top for B&B rights issue

The Institutional Voting Information Service (IVIS) has given its verdict on Bradford and Bingley’s amended rights issue and proposed 23% sale to TPG.

IVIS, which is operated by the ABI, has considered the move to be worthy of an ‘amber top’, an indicator that the shareholders who will vote on the matter should give it careful consideration.

The ABI has also stated that the resolutions propounded are in breach of good governance.

The director of investment affairs, Peter Montagnon, has stated his belief that fundamental principles are being breached by the proposals put forward, and would usually attract a ‘red top’, signalling the most serious concern.

However, Montagnon went on, the exceptional circumstances surrounded Bradford and Bingley coupled with consultations with relevant parties have prompted an ‘amber top’ instead.

The breaches involved include favourable treatment for TPG, and the breach of pre-emption to permit existing shareholders the first chance to buy new shares.

Montagnon also criticised the firm for its lack of properly released management information.

 

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