Daily Banking Industry News
Wednesday 15th of July 2009

Banking Sectors:

By company:

By organisation:

Also see:

July 7, 2008

RBS seeks to reduce exposure with Priory merger

by Gill Montia

Story link: RBS seeks to reduce exposure with Priory merger

Royal Bank of Scotland (RBS) has confirmed that it is negotiating the merger of Priory healthcare group with Four Seasons, the UK nursing home provider.

Priory, which specialises in addictions and eating and psychiatric disorders, is well known for its celebrity clientele.

RBS became a major shareholder in the business last year, when it acquired Dutch bank ABN Amro, however, Priory now has debts exceeding £800 million, rending its equity worthless.

A merger with Four Seasons, which is owned by Qatar Investment Authority (QIA), could create one of the largest healthcare providers in the UK.

It could also reduce RBS’ exposure as lead lender for Four Seasons, which has debts of around £1.3 billion.

RBS also holds payments in kind in connection with Four Seasons and a merger could give the bank the opportunity to swap debt for equity in the enlarged company.

Combining the companies would provide opportunities for major cost savings and could eventually lead to a stock market flotation of the merged entity.

Meanwhile, QIA, which is a sovereign fund set up to diversify revenue for the state of Qatar, is reported to be considering placing Four Seasons in administration.

 

Add to Bookmarks:

ADD TO NETSCAPE     ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL


Related stories to: RBS seeks to reduce exposure with Priory merger

Barnsley BS seeks safe haven with Yorkshire  ...

Legg Mason reduces SIV exposure  ...

UBS posts losses of £2bn  ...

UBS records multi-billion Q4 and annual losses  ...

Australia’s banks heavily exposed to derivatives  ...

No Comments »

No comments yet.

Leave a comment


Previous: « de Bustis parts ways with Deutsche Bank
Next: High Court considers historical overdraft charges »

Visited 1186 times, 1 so far today



Borrowing & Lending News