The Telegraph says that that BG has reassured fellow directors that the club's finances will not be affected by Iceland's troubled banking sector. Telegrapharticlehere
The reason for this is that Guðmundsson's Landsbanki has realized assets worth £300 million by selling them to Straumur-Burdaras, the investment bank.
One analysis is that there is a problem with our owner’s major economic base after all, however it is trying to be sorted.
The sale of these assets may be the quickest way to cash in when the wind starts to blow.
It takes more than BG's word to make me feel completely at ease.
Especially since there is a twist to this deal.
Two of the major shareholders of Straumur-Burdaras are Samson Global Holdings SARL and Landsbanki itself! That means that Landsbanki is voting for a deal with itself…
The second twist is that Samson Global Holdings SARL is equally owned by Björgólfur Guðmundsson and his son Björgólfur Thor Björgólfsson through holding companies.
This means that in effect, Guðmundsson/Björgólfsson are moving money around between their own companies.
Can I sense a bit of bias in this affair?
When will they need to realize some (or more) of the £85 million they used to buy West Ham?
Edit 2008-10-03, 5.07 PM:
According to IcelandReview.com Icelandic Prime Minister Haarde commented on the economic crisis when adressing the parliament saying:
“It will take the international financial community and the world economy a long time to recover and everything indicates that the situation will worsen until we will see the shore”
On the topic of Icelandic banking he said that:
"This was not the last misfortune that will befall the Icelandic bank system"
and
“Icelandic banks, like all other banks in the world, are up for a great defensive fight with the aid of governments and public institutions. I assure you that my government will never stray away from its policy of securing economic stability in every way possible and will make the sacrifices necessary,”
Now are you reassured?
.
The reason for this is that Guðmundsson's Landsbanki has realized assets worth £300 million by selling them to Straumur-Burdaras, the investment bank.
One analysis is that there is a problem with our owner’s major economic base after all, however it is trying to be sorted.
The sale of these assets may be the quickest way to cash in when the wind starts to blow.
It takes more than BG's word to make me feel completely at ease.
Especially since there is a twist to this deal.
Two of the major shareholders of Straumur-Burdaras are Samson Global Holdings SARL and Landsbanki itself! That means that Landsbanki is voting for a deal with itself…
The second twist is that Samson Global Holdings SARL is equally owned by Björgólfur Guðmundsson and his son Björgólfur Thor Björgólfsson through holding companies.
This means that in effect, Guðmundsson/Björgólfsson are moving money around between their own companies.
Can I sense a bit of bias in this affair?
When will they need to realize some (or more) of the £85 million they used to buy West Ham?
Edit 2008-10-03, 5.07 PM:
According to IcelandReview.com Icelandic Prime Minister Haarde commented on the economic crisis when adressing the parliament saying:
“It will take the international financial community and the world economy a long time to recover and everything indicates that the situation will worsen until we will see the shore”
On the topic of Icelandic banking he said that:
"This was not the last misfortune that will befall the Icelandic bank system"
and
“Icelandic banks, like all other banks in the world, are up for a great defensive fight with the aid of governments and public institutions. I assure you that my government will never stray away from its policy of securing economic stability in every way possible and will make the sacrifices necessary,”
Now are you reassured?
.
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1 comment:
In a crisis like this it might actually make sense to move assets off the balance sheet of Landsbanki to some other company, even if Landsbanki is a major shareholder of this company. The crucial factor, however, is confidence, and I can't say that this latest deal makes me more confident in the stability of the two Bjorgolfurs. My guess is that they are working their socks off to find a buyer of WH. Preferably from the Middle East.
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