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Irish Stakeholder (2007)

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Quinns taking 15% Anglo Irish stake http://www.rte.ie/news/2008/0715/anglo-business.html The Irish Businessman Sean Quinn, chairman of the Quinn Group and his family, want to convert their interests in Anglo Irish Bank from Contracts for Difference (CFD’s) to ordinary shares. CFD’s are financial derivatives that allow traders to take advantage of prices moving up, also known as long positions, or prices moving down, namely short positions, on underlying financial instruments. These methods are often used to speculate on those markets. The investors have the opportunity to bet on future direction of a stock without having to actually buy the shares. Generally, they have to stump up only between the range of 10% and 20% of the entire price.
Sean Quinn and his family are the owners of the Quinn Group, who are the only stakeholders in this case. Their aim is to regards these shareholdings as a long term holding for the future. Sean Quinn bought CDF’s for €1 billion to build up his stake. In case of converting his holdings, this action could result in a loss of approximately €500 million, which would constitute a great threat, since Mister Quinn is a large stakeholder. Due to the fact that these contacts fall outside normal disclosure rules in relation to shareholders with large stakes in stock market quoted companies, it is formally impossible by using the CDF’s. Furthermore, CDF’s are very risky – When one does not invest, one has to bet which remains a problem for the stakeholder, Mister Quinn, of the Anglo Irish Bank.
This case was 2008, at this time Sean Quinn was the richest man of Ireland. Nevertheless, he bet to a great extend which causes further and serious problems. Only three years later, in 2011, he declared himself bankrupt in a Belfast court, making him the biggest bankrupt in UK history. If all he had done was buying shares, his losses would have

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