BDO partner appointed to value Northern Rock
by Gill Montia
Story link: BDO partner appointed to value Northern Rock
The British taxpayer is to meet a £4.5 million bill for the valuation of Northern Rock, albeit only until the business is sold or re-floated.
The Treasury has appointed Andrew Caldwell, a partner at BDO Stoy Hayward, to settle the matter of compensation due to shareholders who lost out as a result of the nationalisation of the bank.
Mr Caldwell will act as an independent valuer and has the difficult task of deciding how much the lender would have been worth if the Bank of England had not intervened in its affairs.
Northern Rock shareholders are in the process of seeking a judicial review of the nationalisation process and are known to be looking for at least £4 a share.
The figure is based on Northern Rock’s book value before its rescue.
The outcome of the judicial review is expected in January and some shareholders are arguing that Mr Caldwell’s investigations must wait until it is completed.
According to the Treasury, details of how the valuation will proceed will be made public in due course and no deadline for the valuation has been set at this stage.
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