Apr 2007 Financial News

Concern over lack of disclosure at FCIB

Apr 24, 2007

Minority shareholders of FirstCaribbean International Bank (FCIB) continue to express much concern about the lack of disclosure from the company's board of directors, with regard to the possible purchase of shares by CIBC Investments (Cayman) Ltd (CICL) and the price currently being offered for their shares.

Interim chairman of a group of concerned minority shareholders of FCIB, Peter Permell, yesterday decided to exercise his right with regard to By-Law 26 of the Trinidad and Tobago Securities Industry (Take-Over) By-Laws 2005, to have the fair value of his FCIB common shares fixed by the court.

He told the Express yesterday that other minority shareholders have also written to the offerer, CICL, to decline the current offer price of US$1.6335 cash per FCIB Common Share. They have also opted to let the court appoint an independent evaluator to come up with a fair value for the shares.

Shareholders at RBTT Bank have also now become officially concerned about the FCIB proceedings, as the bank recently confirmed reports that there had been an offer from FCIB to merge with RBTT Bank.

One such shareholder "with a major stake in RBTT" is George Aboud, chairman of George Aboud and Sons, who placed an advertisement in the daily press putting several questions about the merger to the public and RBTT management.

The advertisement was entitled "RBTT's way forward-More questions than answers".

In a letter to Peter July, chairman of RBTT, Aboud questioned if the sale of RBTT to FCIB was in the best interest of RBTT shareholders.

He also called on the Central Bank of Trinidad and Tobago and the Securities and Exchange Commission to formally intervene in the situation on behalf of the local finance community and the shareholders of RBTT Bank. -DR


Source:
The Trinidad Express
Tuesday 24th April, 2007
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