Oct 17 2008
Hersov’s headaces heap
Robert Hersov, London-based member of the Hersov family * of Anglovaal fame, is facing a court order to compensate a German bank for losses suffered with share transactions totalling €234 million, reported Financial Times Deutschland (FTD) yesterday. Should the court decide in favour of the bank, Hersov might have to cough up over €100 million (R1,3 billion at today’s exchange rate).
This is the latest (and potentially the biggest) financial setback Hersov has suffered in Germany this year. Read here about the other setbacks.
According to FTD the bank Nord/LB instituted a court action in Berlin against Sapinda, the investment vehicle of Hersov, for compensation of losses suffered when shares were bought “in Auftrag von Sapinda” (on behalf of Sapinda).
Shares to the value of €234 million were bought in the mobile phone manufacturer Balda, retirement home operator Curanum, network provider Euromicron and the US handcuff manufacturer Remote MDx. When the prices of these shares started dropping earlier this year, Sapinda pulled out and left the bank with “no alternative but to take the shares on its books”.
Subsequently, the bank fired the head of its capital market division and two traders and provided in its books for write-offs of up to €132 million.
There is some light in the tunnel for Hersov: BaFin, Germany’s bank supervisor, has since found deficits in the control processes and structures of Nord/LB. With a little luck, Sapinda might still get away with it…
* The link takes you to a profile of Robert’s father.