TSB Share offer

Scott_Grant

It seems that a large number of people are dumping their shares now at a price of approximately 335p. could this be for fear of the deal collapsing and the share price plummeting?

bowlhead99

A bird in the hand, and all that...

If you were an institutional investor that had booked a 30% rise on the announcement in March, were not on for any bonus shares, and faced waiting another 2 months at a stagnant price, you would probably be happy to pay a nominal broker fee and take a percent or so below the offer price. If you think the deal will go through rather than be scuppered by a surprise higher offer from someone else, upside is very limited while downside exists if it fails, so you may prefer to invest elsewhere.

nandrews

bowlhead99
You have provided some useful information here.
However consulting my dealer regarding the bonus shares. He tells me that if I accept the offer, but the offer does not become unconditional before the due date of the bonus shares, then I risk foreiting my bonus shares!
He refers me to para 8 (as you copied here), but I don't see that mentioned there.
Do you have any thoughts on that?

Thanks
Nigel

BarleyGB

bowlhead99,

To summarise your earlier post, whether we accept the offer or not we should get a bonus? or am I missing something.

What could happen to stop the bonus or could any decision I make stop the bonus?

Interestingly my broker (Barlays) has advised me that the bonus is 10%, not sure if thats a mistake or not, it was something said via phone, not in the letter I received (which doesnt refer to any bonus)

fifeken

The offer is now unconditional, and settlement should be made by 22/5/15 if I read the original proposal correctly.


http://www.tsb.co.uk/investors/sabadell-offer-information/offer-unconditional-as-to-acceptances.pdf

nandrews

fifeken
Thanks for that, I hadn't heard, but it is reassuring.

Nigel

anna42hmr

fifeken wrote: »

The offer is now unconditional, and settlement should be made by 22/5/15 if I read the original proposal correctly.


http://www.tsb.co.uk/investors/sabadell-offer-information/offer-unconditional-as-to-acceptances.pdf

Thats how i was reading it too initially, that once it is no longer conditional they would look to settle the payments in 14 days.

That said, it also seems to imply that the offer will be extended for a further 14 days to give people an opportunity to accept if they didn't before, so can't make up my mind therefore if payments will be made 14 days after the 8th or 14 days after the extension to accept.

pafpcg

Sabadell issued a press release this morning that, following approval from the PRA, the offer is now unconditional 'in all respects'. I guess that means they will now (or very soon) actually pay the shareholders who have accepted the offer. For those who have not accepted the offer, the bad news is that the TSB shares will be delisted on LSE on July 28th. The full press release is on the TSB web-site at www.tsb.co.uk/investors/sabadell-offer-information

nandrews

Thanks for that info.
Only a couple of days ago my broker was only saying they it might be so!
Good to be infomed
Nigel

pafpcg

The funds for my TSB shares arrived in my on-line broker's cash account yesterday afternoon (Friday 10th), which is earlier than the stated settlement date (next Tuesday).

The funds for the bonus shares is expected on July 17th according to the Lloyds press release.