Alliance and Leicester in Bid Talks.

funkyhitman

Sold!

http://news.bbc.co.uk/1/hi/business/7504822.stm

Rommoney

So is there any kind of bonus that customers get?

I know when portman was taken over i got 200 pounds. Will i get anything with Alliance + Leicester?

earlgrey_3

Rommoney wrote: »

So is there any kind of bonus that customers get?

I know when portman was taken over i got 200 pounds. Will i get anything with Alliance + Leicester?

It's a takeover bid using paper so the "bonus" is you'll get one Santander share for every three you now hold in A&L. There could well be other offers.

UK banks are now dirt cheap and the pity is that more may be taken over by foreign banks so that we end up with fewer UK banks and less competition.

Rommoney

I don't have any shares in A+L.

I just have some money in an ISA with them.

rail.link

Rommoney wrote: »

I don't have any shares in A+L.

I just have some money in an ISA with them.

They aren't a building society, so only the shareholders would be entitled to anything. The shareholders are now the "members".

earlgrey_3

Rommoney wrote: »

I don't have any shares in A+L.

I just have some money in an ISA with them.

Ah I see. No, A&L isn't a mutual, it's owned by it's shareholders who will vote for or against the takeover and they'll get whatever's agreed. Customers won't get a vote or anything else.

superstar_2

Does that mean, A&L is now a safer bank in perspective?

Moggles_2

YorkshireBoy wrote: »

A Santander takeover would put all the rotten eggs in one basket though, if the number of grumbles on these boards is anything to go by.

Indeed. I should think they're ideally suited :rolleyes:

earlgrey_3

Banderman wrote: »

Also if the takeover does go through you're going to have Spanish shares and get dividends in Euros with all the hassle that will entail.

Nope. Using their nominee service you'll get paid in pounds with Spanish witholding tax paid (so no further tax to pay for basic-rate payer) by their UK registrars - Equiniti in Worthing.

Jake'sGran

duncaf wrote: »

what happens if I have 35K in Abbey and 35K in Alliance and Leicester and they become one? I can't more it as it's in a two year bond say. Hence reduced cover. Anyone know the answer please? If we're about to see loads of mergers and takeovers in the Banking sector this will be a very pertinent point for many savers (or those lucky enough to be saving large amounts I guess)

I don't see how they could be classed as one account after the takeover in view of the fact that they were separate fixed rate bonds. There must be some protection in a case such as yours. Just noticed this is a hypothetical question? Maybe you could ask the FSA.