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LONDON - Royal Bank of Scotland has entered exclusive talks to take over a US$7 billion ($9.35 billion) investment vehicle that became one of the first casualties of the credit crisis.
Cheyne Finance, the structured investment vehicle, or SIV, managed by the London hedge fund Cheyne Capital, said the negotiations followed "detailed discussions" with several bidders and consultation with the informal creditors' committees.
RBS proposes to set up a new vehicle to buy Cheyne Finance's portfolio to be financed by existing and new investors. Cheyne Finance called in administrators from Deloitte in September after it was forced to begin liquidating assets to repay debts. A sale would let Cheyne Capital get the SIV off its hands.
- Independent
