Was asked to buy shares for family member, now the stock is delisted

makes_cents

So I've got myself in a bit of a pickle.

Around 6 months ago I was asked to buy shares in a few companies on behalf of my father in law who isn't eligible for a S&S ISA because he's non-resident.

I ran into trouble opening the S&S ISA so I didn't get around to buying the shares but I kept the cash parked.

Anyway long story short, one of the shares was LSE:XCH which got bought out by an American firm in Dec 2015 at £1.90 a share.

My question is: what would have happened to the shares if I had of bought them? Would have I just got £1.90 a share or would they have been converted to the newer companies shares?

I'm trying to calculate how much I owe.

Buyout story: http://www.businesswire.com/news/home/20151209005455/en/CSC-Cash-Offer-Xchanging-Plc.

Ifts

makes_cents wrote: »

My question is: what would have happened to the shares if I had of bought them? Would have I just got £1.90 a share or would they have been converted to the newer companies shares?

CSC made an all cash offer so you would have received £1.90 per share:

Under the terms of the Offer, Xchanging Shareholders will receive:

for each Xchanging Share held, 190 pence in cash

http://www.investegate.co.uk/computer-sciences-cp--csc-/rns/offer-by-computer-sciences-corporation--csc-/201512090757384663I/

AnotherJoe

Did you realise how reckless you were being! Suppose the first companies shares had gone up by 3 or 4x? Why not have your relative just buy the shares themselves? It's not necessary to use an ISA.
Return him the money and say you've closed the ISA and won't be doing it again.

Biggles

makes_cents wrote: »

Around 6 months ago I was asked to buy shares in a few companies

Six months? Though the actual takeover announcement was 9 Dec 15, there was bid talk back on 16 Nov that raised the price over the 180p mark, so were you actually asked nearly a year ago? Or maybe he asked you after the bid talk started (possibly not knowing about it) in which case you could only have bought the shares at 185-190p and little or no profit would have been made.

How many other companies were there? How much money was involved? Did you buy any shares at all?

Pincher

Families!

Ask them to buy the green Nicola lozenges, and they will buy the yellow ones.

We get into tangles every time we try to do anything as well.

Meet up for Christmas, and then keep your distance.
Money and relatives don't mix.

Voyager2002

Simply return the money (perhaps with interest). Explain that you discovered that it would be fraudulent to open an ISA for someone else; you are not willing to break the law and put all concerned at risk in this way; you felt awkward about refusing to do a favour after agreeing (although at the time you agreed you didn't realise it would have been illegal) and that was why you delayed telling him.

I wish that all relatives were as honest as you!

xylophone

Reminds me of the parable of the talents!

https://www.biblegateway.com/passage/?search=Matthew+25%3A14-30&version=ESV

Let's hope the OP at least deposited the cash in an interest earning account or there might be weeping and gnashing of teeth!

AnotherJoe

Voyager2002 wrote: »

Simply return the money (perhaps with interest). Explain that you discovered that it would be fraudulent to open an ISA for someone else; you are not willing to break the law and put all concerned at risk in this way; you felt awkward about refusing to do a favour after agreeing (although at the time you agreed you didn't realise it would have been illegal) and that was why you delayed telling him.
!

Fantastic advice. Take it.