ABN Amro books loss on big wheel investments
ABN Amro will almost certainly be forced to write off up to €180m on investments in big wheels, similar to the London Eye, the Volkskrant reports on Thursday.
The bank has reserved between €125m and €180m for an out-of-court settlement with German shareholders who put money into an investment fund which planned to build three huge wheels – one in Berlin, Peking and Orlando in the US.
The London Eye is a major commercial success and carries some three million people a year.
Subsidiary
The investment fund was set up by private German bank Delbrück Bethmann Maffei, which has been a full subsidiary of ABN Amro since 2003.
All the projects have now run into difficulties and have been halted, the Volkskrant says.
ABN Amro has now offered investors compensation equivalent to 60% of their investment if they accept the deal by April 23.
But lawyers for the 10,000 people who put money into the fund – a total €208m – have called on investors to reject the offer and are preparing a legal case, the paper says.
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