ABN Amro risky derivatives lawsuit settled for €55 million as IPO readied

The Dutch bank ABN AMRO has reached a 55 million euro settlement agreement with housing corporation Vestia, just ahead of the company’s jump onto the public stock market through its IPO scheduled for November. The settlement will end the dispute between the two companies over derivative transactions.

Vestia bought several derivatives from the bank between 2004 and 2010 which cost the company a total of 2 billion euros. This eventually landed the housing corporation in financial trouble in 2012.

The settlement will waive the corporation of all claims in connection with derivative transactions. The board at Vestia is satisfied with the result of the settlement, telling Z24 that this would contribute nicely to the sustainable financial recovery of the company.

The Finanieele Dagblad reported last week that investment bankers were now aiming at a value for the bank between 17 -19 billion euros, at least 2 billion euros higher than the 15 billion euros Minister Jeroen Dijsselbloem told parliament he expected in May. Despite this higher amount, the government will still see a loss from the transaction that nationalized the bank. This cost the government 22 billion euros.

Top members at ABN AMRO and investment bankers will be continuing the IPO regardless of uncertainty around the stock market climate and are being backed by the Finance Minister, who wants to speed up the settlement of nationalized financial instruments.