Banco Santander share issue con?

Broadback

Just received a letter from Santander telling me that the have had a share issue, however because of the time issues they have imposed there will be no opportunity for me to take up my options. They will sell them on the market and I will receive any profits less certain costs. How likely is that! It is certainly unfair that they can dilute my holding like that, I wonder if it would be legal for a UK company to act like this? Like many others in the UK I own these shares through having had Abbey National ones. Am I being unreasonable at thinking this is a bit of a con? In the future not only will I steer clear of non UK banks but companies as well.

malcolmK

Unreasonable?...they do a rights issue, sell your entitlement without instruction; at a date of their choice; charge you (undisclosed) dealing and exchange costs for the privilege; send out a set of terms and conditions at the same time to change the rules to allow them to do this...you know, I'm not sure.

I like the accompanying 'Q & A'...in which they are unable to give any UK Tax guidance but go into some detail on submitting Spanish tax form (form 210 before you ask) whilst of course getting your certificate from HMRC to confirm that you are a UK tax resident within the means of the Spain/UK tax convention. - within the next month.

The little rant aside, with the EU being on the go for a while now, wonder when we're going to get some sort of common legislation on share ownership and operation to stop us being taken to the cleaners in this way.

JayTee99_2

Broadback wrote: »

In the future not only will I steer clear of non UK banks but companies as well.

i can see your point, but if you had held B&B shares, just prior to nationalisation, with seemingly 'clear untruths' being told, followed by a rights issue, shortly followed by total collapse, then you might have something to complain about

sabretoothtigger

The best option would be to buy the shares and sell them on the market, shame that is apparently not possible.
Give them a ring and do it over the phone, should be possible if you have money already in an account with them and they are operating their own brokers?

elektra

I have Abbey shares and haven't even received a letter.

Broadback

elektra wrote: »

I have Abbey shares and haven't even received a letter.

Elektra, surely you now have Banco Santanda shares? If indeed you still believe that you have Abbey National shares then you need to look into it, maybe you were overlooked when they were converted, in which case I assume you have not been getting your dividends either.

sabretoothtigger

Phone them up and check. This offer is too good to be missed it seems to me. Half price shares is like doubling your money and if they are rushing it through then you dont even have to wait long to sell them back to market?

Fit_Like

http://forums.moneysavingexpert.com/showthread.html?t=1287839&highlight=santander

opinions4u

Call me old and cynical, but if they are such a sound organisation, why are they raising capital?

Have they over-exposed themselves to the British housing market and South America at the wrong time?

Those 275p HBOS shares were a bargain too!

sabretoothtigger

Oh I thought it was a 46% discount, didnt think they had fallen that much

SAN.MC BANCO SANTANDER R
3:50PM 5.94 €
subscribe for 1 New Banco Santander Ordinary share at a price of EUR4.50 per New Ordinary share.


The hbos shares werent at a discount to the share price, it had allready fallen once to 2.50 when the offer was given and the sub prime santander has is through purchases of subsidiaries.

The main worry with them is the spanish housing market which is suffering much like our own, I dont think they did sub prime or 125% loans and all that due to regulation restrictions at the time.
obviously its best the to double check the situation yourself


20% drop in price since rights were announced

elektra

Broadback wrote: »

Elektra, surely you now have Banco Santanda shares? If indeed you still believe that you have Abbey National shares then you need to look into it, maybe you were overlooked when they were converted, in which case I assume you have not been getting your dividends either.

Sorry I was being lazy when I wrote Abbey. Yes they were converted and I am receiving dividends. Still not sure I received a rights issue letter though - was it in the last week ?