23/11/2004
NEWS STORY
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The fight for control of Formula One kicked off in the high court in London yesterday (Monday).
Presiding over the case is Mr Justice Andrew Park, as the three banks, JP Morgan, Lehman Brothers and Bayerische Landesbank, which own 75% of Formula One take on Bernie Ecclestone, who through a complex series of companies holds just 25% of the sport yet wields all the power.
The banks, who gained their 75% following the demise of the Kirch media group, claim that despite the size of their shareholding that have no power when it comes to making decisions which affect the 'company', and also dispute a number of directors that Ecclestone has appointed.
Acting for the banks, Elizabeth Jones QC, claimed that Ecclestone has "no defence" to the banks' claim that the appointment of two directors of Ecclestone's Formula One Holdings (FOH) was not valid. Furthermore, Jones said Ecclestone, through Bambino Holdings, the F1 supremo's family trust, had "engineered control of the operating companies within the group through various corporate steps taken in the summer of 2002".
FOH is owned by SLEC Holdings, which is in turn 75% owned by the three banks, collectively Speed Investments, and 25% owned by Bambino holdings.
Despite the fact that the outcome of this case could decide the future of F1 and could see Ecclestone deposed as ruler, our sources claim that Mr Excellent is in remarkably good spirits and during recent conversations has appeared anything but a man on the back foot.