U.S. judge says RBC liable in Rural/Metro buyout case - Reuters
A Delaware judge said Royal Bank of Canada should be held liable to former shareholders of Rural/Metro Corp because it failed to disclose conflicts of interest that tainted the US$438 million buyout of the ambulance operator, Reuters reported. Bankers at RBC Capital Markets were so eager to collect higher fees that they convinced Rural/Metro directors to sell the company in June 2011 to private equity firm Warburg Pincus LLC at an unreasonably low US$17.25 per share, wrote Vice Chancellor J. Travis Laster of the Delaware Chancery Court. Former Rural/Metro Corp shareholders are seeking about US$172 million from Toronto-based RBC, according to published reports.
11 March 2014•3 mins read
