£11m KING PLEA FAILS
Judge rules Gers boss must make shares offer
SENIOR judges yesterday rejected an appeal by Rangers chairman Dave King against a court order requiring him to make an £11million offer for remaining club shares.
King’s lawyers had argued that judge Lord Bannatyne went “too far” in ruling that he should make a mandatory 20p offer for every share not controlled by himself and three business partners.
King claimed the judge was wrong to hold that his lack of funds was irrelevant and to reject the argument that evidence was necessary to establish King’s control of trust funds.
His counsel, Lord Davidson of Glen Clova QC, asked appeal judges at the Court of Session in Edinburgh to dismiss the petition brought by the takeovers and mergers panel or send it back to Lord Bannatyne for an evidential hearing. Lord Davidson said that if an offer was to be made at below the current share price, it seemed to be “a pointless exercise” which served neither the interests of the shareholders nor the public.
David Johnston QC, for the panel, urged the Lord President, Lord Carloway – sitting with Lord Drummond Young and Lord Glennie – to refuse the appeal.
He said a rule requiring anyone who had acquired 30 per cent or more of shares to make an offer to other shareholders was designed mainly to ensure fair treatment.
King had argued that he had no control over trusts which held assets for his family but Lord Bannatyne said materiel from the panel showed he did.
The trusts were not willing to have funds used for the share offer.
Lord Carloway said the appeal was refused and the judges would give written reasons later.