B&B Rights issue.. take up the offer ?

setmefree

Share price @ 9.02am ......102.75

Share price @ 9.41am.......105.25

poppy10_2

Share price @ 10.41am....... 107.25

johnbfan

My son had his 'pack' regarding the share issue yesterday. Me and the older son have not, as yet, so they should be through at any time. I am getting really worried about it all as I have about £10,000 tied up in ISAs with B&B for our retirement. Its all the savings we have (more than some but not a lot for 30 years at work) and am really worried about it.

If things take a turn for the worst how do I go about claiming from the FSA and would I get everything back.

I've not told any of the family about this and it is really making me feel quite ill worrying about it.

Steve_xx

johnbfan wrote: »

My son had his 'pack' regarding the share issue yesterday. Me and the older son have not, as yet, so they should be through at any time. I am getting really worried about it all as I have about £10,000 tied up in ISAs with B&B for our retirement. Its all the savings we have (more than some but not a lot for 30 years at work) and am really worried about it.

If things take a turn for the worst how do I go about claiming from the FSA and would I get everything back.

I've not told any of the family about this and it is really making me feel quite ill worrying about it.

Your 10k is absolutely safe, do not panic or worry about that. The FSCS would repay you any cash you had deposited there upto 35k. As to the mechanics of how you would go about claiming, I suspect that your details would be passed to the FSCS if that became the case.

I'm unsure as to why people on here have taken to regularly posting the price of B&B shares on here, when up to the minute information regarding this can be readily obatined from a myriad of other sites

The B&B are raising capital just like HBOS and Royal Bank of Scotland. Shares in banks go up and down like other shares do. I can remember in the not too distant past when for a short period HBOS shares were as low as 299p.

nicko33

johnbfan wrote: »

I am getting really worried about it all as I have about £10,000 tied up in ISAs with B&B for our retirement. Its all the savings we have and am really worried about it.
...
I've not told any of the family about this and it is really making me feel quite ill worrying about it.

If you mean you have £10,000 in a cash-ISA with B&B then you don't need to be worried (mildly concerned, maybe)

If you have a Stocks & Shares ISA with (what used to be) £10,000 worth of B&B shares in it - then you can be worried.

6022tivo

Just got a pack of info in the post...

Not the shares issue yet, just a Form of direction with three options.

1. To increase the Company's authorised share capital and authorise the Directors (With Bowler hats) to issue new shares.

2. To authorise the disapplication of pre-emption rights.

3. To authorise the allotment of new shares instead of the 2008 interim dividend.

All three options with a FOR, Against and Withheld box...

I have not a clue what they are on about... I will have a little read of the stuff to make my mind up...

setmefree

Shares closed at 101.50 :eek:

earlgrey_3

Meggy wrote: »

Does anyone know more about what happens if you don't take up the offer? I know you can sell the rights although not sure how you would do this. But what if you do nothing? I saw something about letting the rights lapse and the company still pays you something. Can anyone shed any light on this?

Meggy, you can sell the rights just as you might sell shares using a stockbroker. What they're worth, if anything, depends on the difference between the reigning share price and what the rights allow you to buy new shares at.

If you don't do anything the rights are all bundled up and sold for you after the offer closes. That's usually the cheapest option if you've only a few shares. Again, what you actually get depends on the difference in pricing.

Cozworth806

Its a 16 for 25 rights issue @ 82p, so....

25 shares @ 101.5 = £25.38
16 @ 82p = £13.12

Total for 41 shares = £38.50

Share price with rights factored in... 93.9p!
Rights price will be about 10p each!!! or £25 if you do nothing.

Also there is a 40% increase in shares in existence so the dividend will drop at least by that much if not halved to around 10p per share, if they earn enough to pay that.

bloaty

Hi all

Got my pack yesterday but haven't got a clue.

I have the standard 250 shares which means I am eligible to purchase an additional 160 shares which means I will own the same proportion of shares as before the righst issue. I understand that.

However, if I am buying 160 shares and I currently own 250 shares but I will end up with the same proportion of shares - how does 160 equate to 250??

Am I being thick or does that mean my 250 shares will be revalued at a lower rate?

I know I should read the pack but it's good to get others points on this (LOL), well that's my excuse.