bradford and bingley

Hi,

Can someone please explain in simple term what this means as I'm totally confused. I think this idea of giving "joe Public" like myself shares might have sounded a good idea, but in reality it means that there are lot and lots of "shares" sitting in draws doing nothing. Both my wife and I and 4 children have 250 current shares. If I do nothing and ignore the letter, does this mean that we lose the shares and they are sold off at the current low figure and we get whats left after fees?

I don't want to throw any more money at BB, but should I sell-up or keep what I've got, accepting that the dividend will be lower, but share price may go up in the future, and what do I need to do for the recommended action.

I thank you all in advance, these may seem like simple questions, but I'm sure you'll be helping many people with your response.

italiastar wrote: »

Hi,

Can someone please explain in simple term what this means as I'm totally confused. I think this idea of giving "joe Public" like myself shares might have sounded a good idea, but in reality it means that there are lot and lots of "shares" sitting in draws doing nothing. Both my wife and I and 4 children have 250 current shares. If I do nothing and ignore the letter, does this mean that we lose the shares and they are sold off at the current low figure and we get whats left after fees?

I don't want to throw any more money at BB, but should I sell-up or keep what I've got, accepting that the dividend will be lower, but share price may go up in the future, and what do I need to do for the recommended action.

I thank you all in advance, these may seem like simple questions, but I'm sure you'll be helping many people with your response.

up


Which courses of action require no financial outlay?

Please explain - what would be the outcome of not returning the papers?

If you do nothing, then your rights 'lapse'. You keep your original holding, don't pay out anything, and if you're lucky you may get some money for the rights. You can sell your rights, but they're not worth much now, and after admin costs I don't think you'd get much (anything?) back.

By looks of market on Friday the RI price closed at 0.4p so that would mean that someone who held 500 shares would get £2! Given there is a £5 admin charge it means getting nowt.

The only people who did well were people who bought them at the beginning and sold a couple of days later (topped at 8p from 2p starting!!!)
The nil cost option was a bit rubbish IMV coz the RI price was never high enough to get many shares for the sale, about 10-20 max.

I decided to Lapse my rights in the end so it meant no action was required by me in the end..whether I will get a cheque for anything who knows..At least I have my 250 orig shares for the longer term.