Extinct shares

masca

Hi. I hope that someone may be able to offer me some help or advice.

We have a few shares which were bought via an HSBC Invest account some years ago. When there's been a company takeover in the past, HSBC have written to us confirming the buy out share price and the money has been credited to our current account in due course. We've never had to take any action - this has all always happened automatically.

We've just returned from three months abroad to find that another take over (Motorola taking over Psion) has occurred in our absence, but this time HSBC wrote to us asking us to confirm acceptance of the buy out price by a deadline date (15th October). We didn't receive any letters until today and our 300 odd shares have now been marked as extinct and I understand that they are now effectively worthless. Although they are worth less than £300, this is obviously very upsetting!

I have two questions which I hope someone can advise on:

Firstly, did HSBC have a responsibility to try to contact us via more than one method (they have email addresses and telephone numbers on file)? It seems ridiculous in this day and age that an online investment account relies solely on the postal service to communicate important information.

Secondly, I appreciate that every situation is different, but what is the likelihood of the Motorola wishing to buy the distinct shares in the future? I'm afraid my knowledge of shares and share dealing is severely limited - it's something my partner 'played' with some years ago and the few shares we still have are left over from this. Should we just forget that we ever invested this money, or is there realistically a chance that we may be able to get something back at some point in the future?

Thank you!

Linton

I dont think the shares are worthless. At some point in the near future Motorola will exercise its right to acquire them by compulsory purchase. See here. What you would have gained by accepting the offer is access to the money earlier.

grey_gym_sock

you will get cash for your shares soon.

motorola are able to compulsorily buy out the remaining shareholders once they have over 90% of the shares (for which they have to pay the same price as in their offer), and appear to be doing so - see the section "Squeeze-out" in this announcement: http://www.investegate.co.uk/Article.aspx?id=201210010725015322N

this usually happens in a successful takeover, because it would be a nuisance to have a few minority shareholders remaining.

masca

That's great news! Thank you both for taking the time to reply.

barak

I agree with Linton and grey gym sock.

I think the Psion plc shares are automatically being shown as [?] 'extinct' on your HSBC account because since 26th October they are no longer on the Official List.

http://investorrelations.psion.com/psionplc/pages/news/press?ref=596

On the Psion plc website the share price is still being shown as 88p - the takeover price.

http://investorrelations.psion.com/psionplc/pages/home

I would have hoped that HSBC should be able to explain this to you. Have you spoken to them masca?

masca

Yes, we did speak to them first, but they made is sound less than likely that the shares would ever have any value again, and they didn't mention anything about the "Squeeze-out" option. Thanks again to all.

barak

If you had a share certificate, it would be easier as you would have received the offer document and could still accept it, but as your shares - I assume - are held in a nominee account with HSBC, it will be up to them to follow up and respond to any compulsory takeover request.

That's not a situation I've ever had to deal with, but perhaps others have?