Northern Rock EGM - Decision Time

peterjohnd

Have others with Northern Rock shares found it incredibly difficult to decide whether to back the board or the hedge funds in the forthcoming EGM?

I have been a long term depositor, originally when it was a building society and received my shares when it became a bank.

I've always been impressed with its involvement and committment to its community in the North East. So I really want my vote to give the best chance for some sort of continuation of employment and community opportunities in the area.

I am suspicious of the hedge funds which have been buying up shares cheaply with presumably the basic intention of making a relatively quick profit. I'm not at all convinced they are in for the long term.

At the same time I'm not very impressed with the way the NR board have publicly defended or explained their position.

At the moment my inclination is to abstain on the first four resolutions unless I find some analysis in the next day or two to help me decide.

I would be interested in any comments.

bristolleedsfan

peterjohnd wrote: »

Have others with Northern Rock shares found it incredibly difficult to decide whether to back the board or the hedge funds in the forthcoming EGM?

I have been a long term depositor, originally when it was a building society and received my shares when it became a bank.

I've always been impressed with its involvement and committment to its community in the North East. So I really want my vote to give the best chance for some sort of continuation of employment and community opportunities in the area.

I am suspicious of the hedge funds which have been buying up shares cheaply with presumably the basic intention of making a relatively quick profit. I'm not at all convinced they are in for the long term.

At the same time I'm not very impressed with the way the NR board have publicly defended or explained their position.

At the moment my inclination is to abstain on the first four resolutions unless I find some analysis in the next day or two to help me decide.

I would be interested in any comments.

imo newly formed board are singing from the government hymm sheet.

whether the hedge funds are in it for the long term is irrelevant, their aim is for greatest shareholder value, a desire that all NR shareholders should share.

NR shares could yet become worthless (so all shareholders should have same goal and that is not to let NR be sold off merely to pay the government back while share holders end up with nothing or virtual nothing ), when virgin was declared preferred bidder by the government ( soz by Northern Rock :rolleyes: ) Sanderson NR Chairman declared NR brand badly tarnished, whether or not that is true is again irrelevant, just shows that Sanderson has no long term interest in NR.

http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article_id=426863&in_page_id=3

only value shareholders would have under virgin plan would be the shares the shareholders buy.

caveat_emptor

The chairman's letter to shareholders says that ' I, and other directors, have collective experience of successfully managing large corporates and bring this experience to Northern Rock.' But the present Chief Executive, Andy Kuipers, was an executive director when the company failed. So much for the chairman's assurance. No credibility and for me no confidence.