Aberdeen Asset Management has agreed to pay £30m to settle an action by Real Estate Opportunities split-capital investment trust against the firm for its part in the split-caps debacle.
In a statement just issued by Aberdeen, the investment house stresses it has “made no admission whatsoever of any liability or of acceptance of the validity of REO's claim” but is paying around £30m to settle the legal action first taken by REO in 2005.
The action was being taken by REO in a Jersey court against Aberdeen AM and UBS and follows recent statements in December 2006 by a Jersey court official ordering Aberdeen to give REO access to certain documents, which are believed to be transcripts of correspondence with the UK Financial Services Authority.
REO is a Jersey-listed split-capital investment trust created in 2001 and which was run by Abredeen for two years but Invesco Perpetual now holds the mandate to run it.
Aberdeen is keen to stress all other aspects of the deal remain confidential while in another statement, REO says it will continue to pursue the action taken against UBS.
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