Friends Provident Merger

Hungerdunger

toozie wrote: »

Should share holders have received some notification regarding the merger?

I've had nothing....

My partner had a forest load of paper delivered today. The chances of her reading it are less than zero. I daresay it has to be done for legal reasons but what a waste of resources.

Old_Slaphead

Makes my blood boil - absolutely criminal waste of money and natural resources.

Should be summarised version with option of full works.

3 people at work incl me rec'd these (combined shareholdings less than £5000) - they say there is no chance of them reading it.

Will however go long way to helping with local authorities recycling stats.

Inspector_Gadget_5

OK, this is how I see it.
We have 3200 shares.
In February the share price stood at 227p. Cash value £7,264
Then there started the merger rumours.
Since then the price has been on a downward spiral standing at 163p a couple of weeks ago.
They have recovered somewhat to 181p today. Cash value £5,792
By contrast Resolution shares stood at 650p in February, but 708p today.
So in the same period FP shares have lost over 20% of their value, Resolution have GAINED 9% in their value.
The proponents of this so called "merger" tell you in the Recommendation Document that FP shareholders will get a premium of at the very least 3.8% and at the best 14.1%.
Given that the value of the shares are down by 20%, I suggest that they have a perverse view of the word "Premium".
I shall be voting AGAINST the merger.

Dustykitten

In the same position as most of you, never knew about the merger, don't really have any opinion other than what a waste of so much time, money and resources to send out the huge book.

travel_freak

Hi,

I was wondering what to do about this too as I have a small holding of shares in FP.

I also have a FP endowment policy which I've been undecided about selling for some time. Would selling it now in light of this merger make any difference to the price I get - would it be a good or bad move or not make any difference at all?

Many thanks.

Regards,

Inspector_Gadget_5

t_f, although you don't say how many shares you have, you seem to be in very similar circumstances to ourselves.
We took out an FP endowment 17 years ago and like most providers, FP have performed very badly. Did you investigate the misselling aspect?
I would not sell if I were you. If you did, someone else would be capitalising on your premiums. Unless you desperately need the dosh, stick it out.
As far as the shares are concerned, I find it very odd that FP shares are DOWN again to 171p from 181p on Friday last.
Whenever takeovers take place and this IS a takeover, no matter what the blurb says. If one partner is getting more than 50% (Resolution are @ 51%), then it is de facto, a takeover. Well when that happens, the minor company (FP) usually see a rise in their share value.
In this case Resolution continue on the UP while FP basically are still going down. Very odd. I think that there are a select few who are, as usual, making a mint while the rest of us get screwed.
My advice is to vote against the merger, if for no other reason than the "select few" will get their fingers burnt and the small investors (like us) it won't make any difference whatsoever.
In fact we may be better of in a couple of years as some other bidder may offer more for FP. I voted against today. Just make sure that you vote against in the Court Meeting as well as the EGM, or it won't count.