Shareholders Seeking Legal Advice As Rams Shares Plummet
Investors in financial institution Rams face low discounted shares as Rams stock dropped 81% since listing in July.
Westpac have made an offer of $140 million for Rams name and home loan business.
The Company still has $15billion in partly unfunded mortgages, which are left in hands of shareholders, and also needs to refinance $4billion in loans.
Upon speculation that Westpac’s offer would be the best shareholders could hope for Stuart Wilson of the Australian shareholders association said that ,“One would hope that over the next few weeks other banks would take an interest in those assets to and force the price up”
The Australian Shareholders Association is claiming that Rams shareholders prospection did not properly specify that Rams were relying on the US credit market for funds. It started becoming known in August that Rams were a of victim the global credit crunch, a result of the US mortgage crisis. Shareholders are seeking legal advice.
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