Northern Rock Shares

meinnit

What is likely to happen to the Northern Rock share price once the winning bidder is announced next week? If the offer is good I can only see the share price going up but I don't know what the worst case scenario is. Could shareholders end up with nothing?

Reestit_Mutton

yes - that is indeed correct.

None of the bidders are required to treat shareholders well. HMG's only concern is for taxpayers' money.

Shareholders may well rattle their sabres but if none of the private sector bids are allowed through by the shareholders then then nationalisation is the only remaining option.

What's more, HMG will be given the final say on any bid so shareholders can't simply accept the bid with the highest shareholder payback if their business plan doesn't meet HMG's objectives.

On the subject of Nationalisation, HMG recently warned that independent valuation of the company for the pupose of compensation would be based on the business prospects WITHOUT the HMG loan (which, in layman's terms, means "almost nowt").

RM

bristolleedsfan

meinnit wrote: »

What is likely to happen to the Northern Rock share price once the winning bidder is announced next week? If the offer is good I can only see the share price going up but I don't know what the worst case scenario is. Could shareholders end up with nothing?

On Monday Virgin will be announcing its new proposals. ( unless its leaked beforehand)

Whats been said is that whoever ( if anybody) lands NR they will be shrinking the business in first instance for 2 reasons.

1. So as to give NR business a new stategy with more emphasis on retail deposits.

2. NR cant be allowed to have an unfair competitive advantage, i.e cant grow aggressively whilst being subsidised by the Government.

Id be suprised if their are any dividends while taxpayers are owed.

So whilst Virgin may well try and sweeten shareholders a little, i dont believe their will be much for NR Shareholders to :j in the Short/Medium term.

Heres a link to an excellent NR Newsfeed. http://www.newsnow.co.uk/newsfeed/?name=Northern+Rock

rebeccaj

looks like Branson is going to be the winner after all

No surprise there then :rolleyes:

his trip to China with President Unelect Crash Gordon seems to have paid off

bristolleedsfan

rebeccaj wrote: »

looks like Branson is going to be the winner after all

No surprise there then :rolleyes:

his trip to China with President Unelect Crash Gordon seems to have paid off

Our fingers were going at the same time. :T


http://forums.moneysavingexpert.com/showthread.html?t=723779

rebeccaj

bristolleedsfan wrote: »

Our fingers were going at the same time. :T

indeed so

the news of the withdrawal of the Olivant bid is not good news for all concerned IMHO

markus

these will fall 30% tomorrow, god knows what then? ... suspension ?

wiseman405

Hi there,
i am only sixteen and i know i cant put my money into shares.

But i could get my dad to put my money in for me. i am so tempted, i know there is a risk with anything like this. do you think there is a HUGE risk with these shares.
i have been watching them and its just so tempting at the moment!!!

Tom

bristolleedsfan

markus wrote: »

these will fall 30% tomorrow, god knows what then? ... suspension ?

That occurrence would be a dream come true for Mr Branson, its going to be a few weeks before a decision is made regarding who ( if anybody) tops the bids so plenty of time for NR shares to go onto freefall mark 3. :eek:

bristolleedsfan

wiseman405 wrote: »

Hi there,
i am only sixteen and i know i cant put my money into shares.

But i could get my dad to put my money in for me. i am so tempted, i know there is a risk with anything like this. do you think there is a HUGE risk with these shares.
i have been watching them and its just so tempting at the moment!!!

Tom

What opinion has your dad got ?

wiseman405

That is so true!!

well he isn't really into shares. But even he said to one of his staff that it would be a safe bet. The bank of england have put so much money in there, it just isn't going to go under. I don't really understand shares. If i put my money in, say £1000, and after a month they blocked anyone from putting money into the shares of the business. Would i loose my money?

Thanks
Tom