stilover

Will there be a cash bonus or share issue for savers?

Can't see anything in the press/media to say that that would happen. Had money in other banks when they've been taken over and I always got the option of cash or shares.

Anyone read/heard anything? I want rewarding for not taking my money out when other people panicked.

davegtt

thought that was only whe a building society got took over by a bank...?

stilover

Why would that make a difference?

stevebt

iTrader: (8)

What are they going to pay you the cash from ?? Northern rock will be sold for far less than its actual market value and I would assume the share holders will be the loosers in the bid

exvaux

iTrader: (1)

share holders will get 1/3 of the value of their shares from what i can make out when they are taken over,as steve said they are being sold for under market value and the new owners need to wipe out a lot of debt straight away,branson offered 11 billion back to the government straight away and the rest restructured over a peiod of time,so i doubt anyone will win out of this situation....except maybe NR bosses

The Snug Rhino

of course there will...thats the way these things work. When a company is failing and gets bought for a pittance they always give some cash to the customers of that company - standard procedure.

Devildog

Ignoring Marks sarcasm, I would doubt very much that NR bosses will win. Many of them are on share deals and are, on paper, significantly less well off than they were six months ago.

The real winners in Branson's deal will be the employees through job retention, Darling & Brown as more than half of the BOE loans are repaid, but more significantly Branson who's consortium aquire a business for, arguably, significantly less than its true worth.

People seem to forget that NR is not insolvent - but it does have a funding issue.

The irony being, of course, that much of that funding defecit was caused by the media scaremongering which brought about mass deposit withdrawals.

On the lunchtime news today:

NR will be facing bankruptcy if the Virgin bid is not accepted.

Unfecking believable mis-reporting by news editors who don't have a clue.

Devildog

Cash "bonuses" have historically been paid out when banks took over building societies who did not have shareholders but who's customers were "members" of that society, ie all the customers collectively "owned" the buiding society.

The difference here is Virgin will aquire NR by buying the shares from the shareholders who are separate entity from the customers, although the two are not mutually exclusive.

Virgin is offering less than the market value per share. So no one, shareholder or customer, gets a bonus payment.

GOLDMAN 555

If you ask me the whole thing with this virgin acquisition is a smokescreen set up by the government. You can see this in the share price today it shot up at the open then when everyone found out what was going on it retreated pretty much back to where it was last week.

This whole acquisition thing will run and run the housing market is tanking in this country why on earth would anyone make a big investment in a market that is going to get a lot worse over the next two to three years.

Always be suspicious if the BBC are pumping a story it is propaganda.

In answer to your question you will not be getting any money whatsoever.

David Lock

To help raise cash existing shareholders would be offered new shares at 25p each. dl

Petem95

Why have their shares bounced on talk of a talkover? If they were to pay only 25p a share, then why the rush on their shares at over 1pound?

I've not read the details, but the shareholders must be set to benefit along the lines somewhere.

GOLDMAN 555

Rush on shares... I wouldn't call it a rush. The Labour Party state-controlled media (the BBC) has been in overdrive all weekend pumping the story.

There was a 40% increase in early trading this fell back dramatically across the day as it became apparent that this was propaganda

Trout

iTrader: (1)

It must be quite sad to have such a victim mentality.

By the way - given your criticism of the BBC for 'pumping' the housing market I seem to have missed your threads congratulating their endless new items this week of a housing price collapse.