Northern Rock - Shares [Merged Threads]

gt94sss2

phil129 wrote: »

This may be a really dumb question but i dont no so im going to ask you guys ! If i were to buy shares at say £1.585 (todays closure price) and next week Mr Flowers comes in and buys the company and he values the shares at £1.70 i will have made a small profit in the short term. But becuase he has purchased the company do i still own the shares ? Do i just get payed out £1.70 for each one i had or do they carry on ? Im really confused what happens in a buy out, im reading this an it dont make sense but can some one shed light on this for me, feel stupid now......

Its not a stupid question but one that is impossible to answer as it can happen several different ways depending on how any takeover bid is structured.

- You might be asked to accept the bid, then when you do you would get £1.70/share using your example

- You might choose not to accept the bid in which case you would still own the shares. However, if the bid is accepted by others and 90% of the shares end up with the company buying Northern Rock, they can legally force you to sell them your shares as well.

- You might be asked to vote on a takeover instead and if the majority of shareholders vote for it, you will just get money for your shares

If you have a share certificate, sometimes you have to send it back to get the money, sometimes you don't - you will get lots of paperwork if there is a bid in these cases.

If a broker holds the shares for you they should write to you and say these are your options, please let us know by x date which you want us to do - if we don't hear from you we will automatically do option y etc..

Regards
Sunil

caveat_emptor

phil129 wrote: »

This may be a really dumb question but i dont no so im going to ask you guys ! If i were to buy shares at say £1.585 (todays closure price) and next week Mr Flowers comes in and buys the company and he values the shares at £1.70 i will have made a small profit in the short term. But becuase he has purchased the company do i still own the shares ? Do i just get payed out £1.70 for each one i had or do they carry on ? Im really confused what happens in a buy out, im reading this an it dont make sense but can some one shed light on this for me, feel stupid now......

If a takeover bid is made the shareholders get to vote for or against. As the shares are held mainly by the financial institutions the small shareholder doesn't count for much. So if the takeover goes through you get the bid price for your shares and the shares become the property of the bidder. If it doesn't go through you keep your shares.

bristolleedsfan

gt94sss2 wrote: »

-
- You might be asked to vote on a takeover instead and if the majority of shareholders vote for it, you will just get money for your shares

If you have a share certificate, sometimes you have to send it back to get the money, sometimes you don't - you will get lots of paperwork if there is a bid in these cases.

Regards
Sunil

are u saying that NR shareholders will def get given cash for their shares, is their a possibility that NR shareholders will get offered shares in the new company or if NR is kept intact by the buyer shares in NR

BMWobbleU

bristolleedsfan wrote: »

are u saying that NR shareholders will def get given cash for their shares, is their a possibility that NR shareholders will get offered shares in the new company or if NR is kept intact by the buyer shares in NR

I didn't read that from gt94sss2's comments. You could get something (couple of £'s+, or nothing (a few pence a share). It is upto the raider. If there is nothing better on the table, a few pence is better than nothing :eek:

jamesd

bristolleedsfan, all of those are possible. Including things like one "New NR" share valued at 1p in exchange for every share currently held if the value continues to drop and the company becomes effectively worthless before a deal is done.

This doesn't affect savers or mortgage holders at all, they continue to retain the full value of their property and obligation to continue to pay the mortgage to whoever gets the company.

Oakey22

NR up today so far, should look good in the future for NRK

Oakey22

maybe buying up the stock to form a takeover? I dont know much about this sort of thing, so maybe not, LOL

Jake'sGran

Oakey22 wrote: »

maybe buying up the stock to form a takeover? I dont know much about this sort of thing, so maybe not, LOL

According to The SundayTimes Business section yesterday it will be Citibank that will probably get Northern Rock. It was on the front page and you can read it on line today.

bristolleedsfan

Jake'sGran wrote: »

According to The SundayTimes Business section yesterday it will be Citibank that will probably get Northern Rock. It was on the front page and you can read it on line today.

citibank have merely offered to lend NR 10 billion so it can refinance at a lower rate than the rate BOE is charging it.


http://www.bloomberg.com/apps/news?pid=20601102&sid=a0AMxKl04PGE&refer=uk

Burlesque_Babe

A jump up this morning. There has been an announcement all savings will be guaranteed - including those new accounts after 19 September which previously weren't guaranteed.


http://www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?id=1597381&source=RNS