Nationwide & Portman to Merge!!!

ManAtHome

As ReportInvestor mentioned, Basel II is on it's way - lots of expensive IT changes... may encourage a few of the smaller ones.

ReportInvestor

suekjw wrote:

Thanks - seems too good to be true!

Many congratulations on your double windfall from the Staffs! It should be slightly tempered by the knowledge that Portman got Staffs on the cheap.

See this Telegraph article for how they were pressured into nearly doubling their initial offer

Staffs, Lambeth & Greenwich members join the "double windfall club" that was first claimed by Standard BS members ealier in 2006. Standard BS got gobbled by Mercantile, who in turn were gobbled up by Leeds BS.

All this current celebration is, of course, subject to 75% member support and the FSA all clear.

See this link for details of BS merger bonuses over the last decade

edda

ReportInvestor wrote:

I don't follow your reasoning edda.

With this addition, Nationwide will be in a stronger position to exert market pressure on the Plc banks. Isn't that a good thing?

Call me a pessimist - but look at what happened to the Halifax.
Short term windfalls will be wiped out by lower rates of interest very quickly.

I prefer long term commitment to dedicated savers - now there's an old fashioned concept in the financial sector :rolleyes2

ReportInvestor

You are still saving with a mutual. Halifax savers voted to give up on mutuality.

A possible mistake, IMHO, is to look on these merger bonuses as a zero sum game.

The synergies and costs savings achieved by the larger merged society will work through into better value products for members of both societies and improve the mutual sector's competitive edge.

Take one example:

Portman don't offer current accounts or cash machines. So in the South West the Nationwide machine will be able to use Portman branches using its Flex account to offer an alternative to the Big 4 banks.

Milarky

ReportInvestor wrote:

Take one example:

Portman don't offer current accounts or cash machines. So in the South West the Nationwide machine will be able to use Portman branches using its Flex account to offer an alternative to the Big 4 banks.

Have you tried getting service in a Nationwide Branch recently? The bank account is great - would recommend it to anyone - but for online use. In other words customers looking for something better out of the branch network are going to be disappointed (assuming they aren't already.) It's customer base they will get. The customers will be lucky to notice any difference there.

ManAtHome

edda wrote:

Call me a pessimist - but look at what happened to the Halifax.
Short term windfalls will be wiped out by lower rates of interest very quickly.

I prefer long term commitment to dedicated savers - now there's an old fashioned concept in the financial sector :rolleyes2

And certainly one you couldn't accuse Portman of following...

ReportInvestor

OK, Lloyds & Barclays beat Nationwide & Abbey for counter service. How often do we praise those two on MSE?

But you can operate your Nationwide account online, as you say, and still nip into the branch to use the quick paying in service for cheques, without having to queue.

This will be a new facility over much of the South West, which is "mutual lite" after the Portman (but more significantly the Cheltenham & Gloucester) went on the takeover trail.

schiff

suekjw wrote:

We were in The Staffordshire and had a payout when the Portman took us over last year (or the year before?). Does this mean we get another payout?

This is a surprise! I was with the Staffs when Portman took it over, but I don't remember anything about a payout and I certainly didn't receive one.
Can you remember any detail?

schiff

schiff

schiff wrote:

This is a surprise! I was with the Staffs when Portman took it over, but I don't remember anything about a payout and I certainly didn't receive one.
Can you remember any detail?

schiff

I've found the answer to my own question - the Portman/Staffs thing was in 2003 (time must really fly for you suekjw!) and my account with the Staffs was opened in 4/05. Still I will benefit from this one.

I'm intrigued by the mention of the payout 'before tax'. What's that about? When I benefited from mutualisations in the dim and distant, I got shares that I could sell at my leisure for no tax. I'm obviously out of touch as it looks as if mergers are different.

Someone fill me in, please?

schiff

KTF

schiff wrote:

I'm intrigued by the mention of the payout 'before tax'. What's that about? When I benefited from mutualisations in the dim and distant, I got shares that I could sell at my leisure for no tax. I'm obviously out of touch as it looks as if mergers are different.

The payout will be cash (probably paid into your account) which you will then be taxed on if you are a tax payer. You wont get shares because the Nationwide dont have any as they are not a PLC.