THE LEADER of a group of rebel shareholders in Irish Life and Permanent has said they will challenge the Minister for Finance if he seeks a High Court order to proceed with the company’s recapitalisation and takeover by the State.
An offer from lawyers for eight shareholders within the group to secure a settlement of 90 cent a share from the Government expired at a deadline set by the shareholder group yesterday.
The group, led by Malta-based investment fund Scotchstone Capital, is seeking to halt the €3.8 billion Government recapitalisation which will leave the State with a 99 per cent stake in the company, wiping out shareholder interests.
The shareholders have enough support to table four resolutions at an egm next Wednesday to approve the recapitalisation. Piotr Skoczylas, Scotchstone managing director, told The Irish Timesthe shareholder group would "do what is in their power to oppose this totally unjust and illegal expropriation by [the] back door".
Law firm Brown Rudnick, representing eight shareholders, wrote to the Government on Thursday, seeking 90 cent for each share and threatening legal action if no settlement was reached.
Among the shareholders is Liberal Democrat MP John Hemming, who has said he invested about £400,000 (€456,000) in the company since late last year.
Mr Skoczylas said the offer was not accepted by the deadline.
He stressed the offer from the law firm would be for the benefit of a group of about 150 shareholders who were supporting him.
“Those 150 shareholders are kept by us in as close a loop as possible and there is no questions (sic) that they would all benefit from this effort,” he said.
In an e-mail to shareholders in the group yesterday, Mr Skoczylas said Brown Rudnick would no longer work with them on a “no-win/no-fee basis”, and that they were seeking other lawyers to represent them against the company.
He explained to the group the shareholders listed in the legal letter paid the firm’s initial fees but more shareholders could sell shares in any possible settlement.
He told them to vote against the company’s resolutions at the egm.
