Question: I had shareholdings in Northern Rock when it was nationalised. Has the valuation of these now been settled?
Answer: Northern Rock was not so much nationalised, as rescued from complete disaster. Accountancy firm BDO Stoy Hayward has just completed its valuation of Northern Rock shares when the company was taken over by the Government. Not surprisingly, it concluded that they were worthless — so shareholders can expect no compensation. All investors should receive a letter confirming this. But this is not the end of the road. Shareholders, led by large hedge funds, intend to lodge a legal challenge.