FAI takeover cost HIH half a billion - commission report
SYDNEY, April 16 AAP - The takeover of Rodney Adler's FAI Insurance caused the ill-fatedHIH Insurance to lose $591 million, the HIH royal commissioner has found.
In his report released today, commissioner Justice Neville Owen said the late-1998takeover was one of the major factors that contributed to HIH's $5.3 billion collapsein March 2001.
"My estimate of the directly quantifiable loss suffered by HIH due to the acquisitionof FAI is ... $591 million," Justice Owen said.
"I have ignored all integration costs following the takeover, although they were calculatedat $55 million."
Justice Owen has identified five possible breaches of the corporations law by formerHIH director Rodney Adler, who was chief executive officer and a major shareholder ofFAI when it was taken over by HIH.
He recommended the possible breaches be referred to the Australian Securities and InvestmentsCommission (ASIC) to consider civil action.
Mr Adler could also face criminal charges for obtaining money by false or misleadingstatements, Justice Owen said.
AAP kbw/mg/bwl
KEYWORD: HIH FAI
No comments:
Post a Comment