Harmony issues statement in support of GATA

Section:

BASEL, Switzerland, Jan. 8 (Reuters) -- Central bank
shareholders of the Bank for International Settlements
voted unanimously on Monday to buy back all shares from
private shareholders, ignoring threats of a legal
challenge.

The BIS, an international institution that serves as a
bank to central banks, stuck by a plan to pay 6,000
Swiss francs per share for the 72,648 shares, or 13.73
percent, of its total capital its member central banks
do not yet own, despite objections from some private
shareholders.

However, some private investors are not satisfied.

SocGen First Eagle Fund has filed a complaint in
Manhattan.

BIS General Manager Andrew Crockett said BIS records
showed the SocGen has 5,000 shares outstanding, but the
company said it had 9,000 altogether.

Separately, in the United States, gold analyst Reginald
Howe has also filed a suit against the BIS alleging
that it colluded with other central banks to depress
the gold price. Howe also claims that the BIS is
offering private shareholders less than fair value.

Crockett said there were two further complaints in the
pipeline. One of these comes from the French firm
Deminor.

Deminor has threatened a dozen top central bankers with
legal action if they approve the buyback, saying they
think the offer is 53 percent lower than the BIS's net
asset value.

Deminor's Fabrice Remon told Reuters, "This is an
outlaw operation. There were no checks and controls.
The central bankers have set the rules of the game to
suit themselves. We're going to take this to the
courts." He said Deminor would probably make its move
as soon as next week.