Norhern Rock´s two largest shareholders have asked the board for holding an extraordinary meeting in order to talk about the currently bank´s situation and to be considerated before making a definitive decision about Newcastle lender´s sale.
On one hand, there is SRM Global, which is the hedge fund run by former UBS trader Jon Wood. It now holds 6.44 pct stake in the bank as it raised it 0.27% on tuesday. The other big shareholder is RAB Capital, another hedge fund, own 6.56% of the bank which makes a total of 13%. together.
They have expressed their displeasure about the goverment behaviour, as they feel that the board have almost ceased to consider shareholders as an important constituency. But does they have any power actually?http://financialmediaandcomms.blogspot.com/
On the other hand, UKSA is supporting their EGM requisition as it made an annoucement yesterday, telling they think it is important that shareholders have a say in the outcome of what happens to their company and the assets of the business.http://www.uksa.org.uk/UKSA_Press050_Northern_Rock_EGM_Requisition.pdf
To sum up, their main goal is protecting their interest against a cheap sell-off of the bank´s assets to save Government blushes with speedy conclusion to the crisis, as the deadline of Bank of England´s loan to support Northern Rock is on February 2008. However, the bank share price at record lows seem unlikely to make a profit, in other words, they will try to loss as less as possible.
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