Monday, September 15, 2008

F1 Shareholder files for Bankruptcy

Quoted from F1 Technical

"In the midst of a financial crisis on all markets, Lehman Brothers, the fourth-largest US investment bank, has filed for bankruptcy protection, dealing a blow to the fragile global financial system. Lehman Brothers is part of the CVC group that own 16.8% of Formula One shares.

Lehman was forced into bankruptcy after Barclays Plc and Bank of America Corp. abandoned takeover talks yesterday and the company lost 94 percent of its market value this year. Today, the stock dropped a further 92%, making it virtually invaluable.Earlier on, the American government had decided to take over Fannie Mae en Freddie Mac but have opted against that option for Lehman Brothers. It still remains to be seen how the value will evolve and if whether anyone would allow the bank to go bankrupt completely.It is also not clear how such would influence F1, but it is clear that interested parties may try to take over the stock owned by the troubled bank."

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