Requiring only that consideration be commensurate with the value of transferred assets invites frequent and significant disputes over valuation, a problem compounded when the consideration consists of shares in the bridge bank, whose own value must then also be assessed.
Source quote, verbatim
However, because the required consideration must only be commensurate with the value of the transferred assets,419 there may often be significant disagreements over the issue of valuation.
From
Christoph K. Henkel, Wulf A. Kaal, Contingent Capital in European Union Bank Restructuring (2012), (b) Regulatory intervention powers and procedures, p. 48 https://ssrn.com/abstract=2061166 · source PDF
Cite as
Christoph K. Henkel, Wulf A. Kaal, Contingent Capital in European Union Bank Restructuring (2012). SSRN: https://ssrn.com/abstract=2061166
Holds when
asset transfers to a bridge bank under the German Banking Act
consideration paid in shares of the transferee entity
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