Bristol & West PIBS / Bank of Ireland

JWatson_2

Hi

Just wondered if anybody else was facing the decision of whether to accept the Bank of Ireland offer for the former Bristol & West 13.375% PIBS ?

It would be good to share thoughts and opinions !!

Thanks

J

avengergt

Hi J Yes I am having trouble making decision.
I personally think its a disgrace that this is allowed to happen.
Have just spent a couple of hours reading many articles but no advice available.
I think I will have to accept offer as not doing so seems risky.
A

NothingIsCertain

I've decided not to accept the offer, although you're right there is some risk that I will lose the whole lot as a result. However, if the current optional offer is followed up with an application for compulsory purchase I will fight tooth and nail. Have already written to my MP and other ministers, you might consider doing the same before accepting what I would presume is a significant loss. It seems to me that if a compulsory purchase went ahead it would be pretty well the equivalent of robbing pensioners at gunpoint. One of the many reasons... the loss inflicted is being inflicted on defensless long term bondholders who had no say in the activities of BOI, whilst shareholders and preference shareholders are just being left in tact - flying in the face of capital stucture. BOI is solvent and has raised the capital it needs, much of it from private investors. Inflicting loss on UK pensioners at this stage is opportunistic at best and criminal at worst. Many pensioners won't even be aware that any of this has happened as it's taking place in an entirely different jurisdiction to the one they thought they invested in. It would seem to me that a compulsory purchase at this stage is not even in BOI or the Irish Government's interest as it would destroy the early shoots of regained confidence in Irish corporate and sovereign capital raising efforts, with huge implications w.r.t Irish recovery.

Reaper

I'm not a PIBS holder but I think it is underhand to rig the vote in this way. They know that many people will think "I'm strongly against it but my one vote won't affect the outcome and I don't want to lose out". But of course if enough people do that it does affect the outcome.

pqrdef

NothingIsCertain wrote: »

Many pensioners won't even be aware that any of this has happened as it's taking place in an entirely different jurisdiction to the one they thought they invested in.

A bank takeover is a peculiar thing, because it involves loans being reassigned by borrowers, the lender then being stuck lending to a bank that he might not choose to be lending to. Something should be done about it.

gadgetmind

I strongly suggest people investigate the Banking Sector board on the Motley Fool forums. There are lots of holders there and they are organising for a fight.

avengergt

Thanks all for the info.
Lots of opinion on Motley Fool, has possibly changed my mind to not accepting offer.
Also hold B & B 13% so income greatly reduced at moment hence my concern on this one.

gadgetmind

avengergt wrote: »

Thanks all for the info.
Lots of opinion on Motley Fool, has possibly changed my mind to not accepting offer.

Did you see the thread titled "BKIR Q&A"that was started yesterday?

I don't have any skin in this one, but I'm watching with great interest as I hold LLPC and NWBD.

avengergt

Yes saw that and statement issued by FSA.

gadgetmind

avengergt wrote: »

Yes saw that and statement issued by FSA.

Yes, what a useless bunch. Fancy classing a bank trying to rip off a load of pensioners as a fund raising exercise!