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Dave King 'knows he has to make £11m Rangers shares bid'

Ibrox chairman is aware the law forces him to make club shares offer, court told.

Dave King: Could be forced to make £11m offer.
Dave King: Could be forced to make £11m offer. ©SNS Group

Rangers chairman Dave King should not be treated as a "poor businessman" who did not know he is legally required to fund an £11m share purchase, a court has heard.

Advocate James McNeill QC told judge Lord Bannatyne the tycoon is not an "innocent".

The Court of Session in Edinburgh heard on Friday how Mr King allegedly knew legislation dictated people who hold a 30% stake in businesses are compelled to make the offer.

Mr McNeill told the judge a suggestion made by Mr King's legal team that their client was unaware of the 2006 Companies Act was incorrect.

The lawyer said there was evidence available to know Mr King was fully aware he would have to make an offer to remaining shareholders.

He said financial investigators believed they had established Mr King acted "in concert" with three wealthy fans, who are nicknamed the "Three Bears".

He said Mr King acted with George Latham, George Taylor and Douglas Park to acquire a 34% stake in the club.

Mr McNeill said he disagreed with claims the four men did not act in concert.

He also disagreed with a claim made by Mr King's lawyers that 14.7% of the 34% share was held by a company independent of Mr King.

Mr McNeill said Mr King refused to cooperate with investigators and all available evidence showed the businessman was in control of the 34% stake.

"Mr King is not some poor businessman who does not the workings of the Company Act. This is not someone who is a poor innocent. He didn't come before the panel and say 'I didn't realise'. He decided not to appear so he could not be cross-examined."
Advocate James McNeill QC

Mr McNeill added: "Mr King is not some poor businessman who does not the workings of the Company Act.

"This is not someone who is a poor innocent. He didn't come before the panel and say 'I didn't realise'.

"He decided not to appear so he could not be cross-examined."

Mr McNeill was speaking on the final day of a two-day debate at the court.

The Panel On Takeovers and Mergers, which regulates financial deals in the UK, says it has started proceedings after Mr King ignored an order to make an offer for the remaining shares.

The panel want the court to make an order that would force Mr King to make a cash offer at 20p a share to remaining shareholders.

Mr King's advocate, Lord Davidson of Glen Clova QC, told the court his client did not have money to make the offer and was not able to fund the buy back.

Lord Bannatyne will issue his ruling at a later date.

https://stv.tv/news/west-central/1399784-rangers-chairman-dave-king-must-make-11m-shares-offer/ | default

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