Glitnir Bank May Issue Golden Shares to Sedlabanki, Visir Says

The committee that is winding up failed lender Glitnir Bank hf has suggested that Iceland’s central bank receive so-called golden shares in return for approving a creditor settlement, Visir reported, without saying how it got the information.

The shares would allow Sedlabanki to veto changes to Glitnir’s constitution after a creditor settlement, preventing any major changes to the company’s operations, the Reykjavik- based news service reported.

Glitnir was the first of Iceland’s three major lenders to fail in October 2008. Together, Glitnir, Kaupthing Bank hf and Landsbanki Islands hf had balance sheets ten time the size of the island nation’s $13 billion economy.

To contact the reporter on this story: Omar R. Valdimarsson in Reykjavik valdimarsson@bloomberg.net.

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net.

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