So little understanding. I seem to have to repeat myself in various ways to get the following through:
The DR is a tradeable security with a market value (if any) determined by the market. ABN Amro are hoping to make that market. They will not be giving any cash to LGB, as r33 imagines. It is decidedly not, as r33 claims "A voucher for $294 million". ABN hope to sell it in the capacity of a MM. That is why they have insisted that it be admitted to the pseudo-exchange run by The Depository Trust Co in the US ("the DTCC platform*)
You are all going to find that, not only is the true NAV of LGB severely affected by the lack of marketability of a DR whose underlyer is a 2009 term deposit in an unstable country with severe exchange controls, but also that LGB's latest accounts are no guide to future "investment income", if indeed they are correct as to that item for the period covered.
IMHO, the "verification" RNS has nothing whatever to do with anything other than that either or both:
a) ABN Amro will not complete clearing on Euroclear. Pearson said due by 31
Oct - obviously now totally impossible. The financials and delivery criteria
clearly cannot be met during 2005. So - no clearing = no settlement = not
even a market for many months.
b) The interim accounts fail to recognise the severe impairment of ALL of the
term deposits held in BoB which are apparent from the foregoing. The forced
purchase which is necessary to release the remainder of the BoB deposits
necessitates a vast discount to their stated worth.
REMEMBER - THESE ARE HISTORICAL COST ACCOUNTS - drawn up to a date preceding all the recent RNSs . No Post-balance sheet events disclosed. ALL BRAZILIAN DEPOSITS DESCRIBED AS INVESTMENTS.
Cute accounting ( I specialise) but highly unlikely to be fraud. Just piss-taking. And institutions fall for it on a daily basis.
The Kraut boards ( where 2LB & pblack hang out) reckon 20-25p in the unlikely event of it ever being unsuspended.
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