Legal action against Rangers chairman
King back in court for snubbing bid ruling
The Takeover Panel has raised proceedings in the Court of Session against Mr King for refusing to abide by its ruling last month.
He was told to make an offer for the remaining 65% of Rangers shares he does not control because he was judged to have acted in concert with others. The deadline for for him to make an offer lapsed on 12 April.
In a statement the Takeover Panel said: “The Takeover Appeal Board directed that Mr King should announce an offer pursuant to Rule 9 of the Takeover Code by 12 April 2017.
“No such offer having been announced, the Takeover Panel has today initiated proceedings in the Court of Session, Edinburgh under section 955 of the Companies Act 2006 seeking an order requiring Mr King to comply with these rulings.”
City takeover rules say that any shareholder exceeding the 29.9% threshold must make an equivalent offer to all shareholders.
The panel said Mr King and his “concert party” – Douglas Park, George Letham and George Taylor – worked together to acquire a 34% stake in RIFC, and that this would trigger an automatic bid for the company.
The ruling meant Mr King was required to source around £11 million in funds to cover the offer.
If the Takeover Panel wins its application and Mr King then fails to comply with the court order, it will be up to the court how he is then dealt with.