Friends Provident Merger

br_bear

Sorry if I'm being thick but would appreciate any help. I have some shares in Friends Provident and wondered what will happen to them after this merger. I think they are going to issue 4 shares in the new company for every 13 previously held. Is this a good thing? Will there be any kind of dividend from this merger? Can I and should I sell my shares now or wait until after the merger?.. cheers guys, I'm a bit of numpty when it comes to this stuff. B.

dunstonh

I would hold. Friends Provident have some good distribution channels and their name is still fairly strong. Resolution are cash rich but have few distribution channels (mostly dealing with closed insurance companies). The two coming together is good for both. Which is why Pearl and Standard Life are trying to scupper it.

You will have to wait for terms of any takeover to see what the final outcome will be.

david69_2

I've had mine since they went plc haven't been great but but I've hung on to them and i see no reason to sell them now

Old_Slaphead

Assuming merger went ahead (FWIW unlikely in my opinion) the terms are 4 'new' Friends/Res shares for 13 'old' Friends shares. So, hypothetically, if you had 12 old Friends shares would you get (a) 0 'new' (b) 3 'new' or (c) some shares (?) & some cash (??)

toozie_2

Should share holders have received some notification regarding the merger?

I've had nothing....

pazbhan

I too have shares in FP and have been following a discussion forum for them on http://www.iii.co.uk/ which you might find interesting. There's one particular contributor called Darkyhorse who I follow and he seems to have a good grasp of everything.

steve_anne

Watch the post, Toozie - I've just had this morning a brick of an envelope fall through my door. Basically the terms are that you will receive 4 new for every 13 old shares. Once you divide your existing shares by 4, any remaining 'old' shares will be paid out to you in cash at the going share price. However, if the proceeds from these old shares is less than £3 (only applicable if you are left with 1 'old' share) then the £2.99 or less will be paid into the Friends Charitable Foundation. Personally, I feel the same as 'dunstonh' and would vote for the merger.

steve_anne

*** Once you divide your existing shares by 4, any remaining 'old' shares ****

Sorry that should read 'divide your existing shares by 13' - see what old age does to you!

vix2000

sorry to be a pain but can someone explain to me whats happening? My own fault, but when I recieve a letter from FP I assume its just bumph about my shares and chuck it in the drawer. Hence I knew nothing about the last merger let alone this one!!!

Then I recieved a phone book sized package this morning and still haven't a clue whats going on. Doesn't seem to be much about it on here. Just a brief resume of events would be welcome. Thanks.

toozie_2

Thank you Steve ann.

We had no post today-think there was unofficial action in the local sorting office. Hope some comes through tomorrow.

I have 774 shares, so does that mean (bear in mind I've had a long day at work today!!) that 59 x 13 =767. So there 7 shares left which they will send a cheque for £20.93???

Does anyone the the share price now? What is the price of Resolution? What sort of company are they-never heard of them?

On the site pazbham recommended, it seems its a good bet, both companies have excellent past history in various different things, and together they should perform well.

Old_Slaphead

toozie wrote: »

Thank you Steve ann.


I have 774 shares, so does that mean (bear in mind I've had a long day at work today!!) that 59 x 13 =767. So there 7 shares left which they will send a cheque for £20.93???

Current FP share price is about £1.80 so you'd get 7 x £1.80

Think sending out these monster packs is a waste of time for smaller shareholders. There should be a much smaller "Key Points Summary" with an opt in for anyone who wants the full works....think how many trees (and postmens overtime) that would save.

It's all a bit of a waste of time anyway 'cos someone's gonna jump in and spoil the party (by bidding for Resolution)