BAA acqusition-HELP ASAP Deadline soon!

shays_mum

Hi my dad is abit confused about the proposed BAA takeover from adi ltd. There are 4 ways of getting shares, but no prices have been mentioned on any of these options. Does anyone have any clue as to what seems the best option?
The deadline is on 26/6/6.
Thanks in advance for any advice given

cheerfulcat

Anything of use here?

shazzer22

I am part of the sharesave scheme and it is my understanding as an exisiting shareholder you can sell to Ferrovial (consortium that makes up adi ltd) for £9.35 per share plus 15p dividend, so £9.50 a share. If you decide not to sell and ADI Ltd acquire 90% of the company by purchasing of shares then they can compulsory buy the remaining shares. If you hang on to them BAA will no longer be listed on the stock exchange so you would have to find a buyer yourself which the company are advising against. try looking at https://www.baa.com for some more info.

taylornj

I also have / had shares in BAA, more complex or less complex as my BAA shares were held in a PEP. PEP's can only hold certain shares, or cash waiting to be invested in shares, some options would no longer be held in the PEP and so lose tax benefits.

I was given 5 options, and there is a sixth.

1. Cash Offer.
2. Loan Note Alternative.
3. Partial Share Alternative with Cash
4. Partial Share Alternative with Loan Notes.
5. Additional Share Election
The sixth option was to just sell the shares, but @930p less fees cash offer is better.

Options 1-5, you receive 935p / share, the form it takes just changes Cash, Loan Notes, Shares. I will also receive a dividend of 15.25p this should be in the form of cash.

I went for the simplest the CASH Offer which is the only option that remains within the PEP so limited in my choices, thats 935p/share and dividend 15.25p payable 11th August 2006.

All I have to do now is wait for the cash to appear in the PEP, and invest that cash in some other shares.

If you dad doesn't understand, go with what is easy to understand - the cash offer. May not be the best long term option. If you dad has a large holding of BAA shares, other assets then he should consider getting proper advise from an IFA.

doberryfirkin

I am not surprised you are confused. I also have BAA shares and have found the correspondence from the company bewildering. One minute you are getting letters telling you to reject the offer, the next letter urging you to accept.

ReportInvestor

I am very concerned about this confusion.

BAA pays its City advisers enough and it knows that it still has an army of small shareholders.

Can you only apply for loan notes if you accept the offer? Do you otherwise run the risk of having your shares mopped up by Ferrovial for cash, triggering a CGT bill?

If so, it is like holding a loaded gun to the head of any investor who is sitting on any sort of potential capital gains tax bill. (And these are the investors who carry most influence.)

Or if it is the case that loan notes will also be available later, to those who don't accept, shouldn't this have been made clear?