Hedge Funds, Goldman Rush Into Iceland as Krona Controls End
- Arion Bank was formed from Iceland’s Kaupthing Bank in 2008
- Investors privately buy stakes ahead of potential public sale
Iceland Finance Minister Not Comfortable With Krona Moves
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Less than a week after capital controls were lifted a bevy of hedge funds and Goldman Sachs Group Inc. piled back into Iceland by snapping up a 48.8 billion-kronur ($450 million) stake in one of its reconstituted banks.
Arion Bank, formed from Kaupthing Bank’s domestic assets after crisis swept through the nation’s financial system in 2008, said on Sunday that its largest shareholder sold almost 10 percent stakes each to hedge funds Attestor Capital and Taconic Capital Advisors UK, while entities affiliated with Och-Ziff Capital Management Group and Goldman Sachs bought 6.6 percent and 2.6 percent, respectively.