So many stocks over the years come with many rumours which you just follow and sit tight...
I bought The Times on Thursday and mentioned that Zurich would only offer cash if the deal were accepted.
Possibly because they wouldn't want to go down similar route as Verizon did with Vodafone and list the stock on LSE so they could offer part stock and part cash.
This must be my 13th m&a deal I remember being part of in my 17yrs with my stocks and shares. Boots - went private with KKR Scottish Power - Iberdrola Carlsberg - forgotten who bought them from me Xstrata - Glencore Safeways - WMorrisons Cadburys - Kraft Arriva - Deutsche Bahnhoff SSL - Reckitt Alliance&Leicester - Santander Rexam - BALL pending Can't remember the other few iv been lucky with ...
If the deal were to go ahead then they would buy your shares from you, but until any formal announcement is made you would not know whether it would be all cash, all Zurich shares or a mixture of the two. As sam says this is only at the early stages yet, if you sell now you may miss out on an extra 30p in a few months or, the deal could not go ahead, the sp could drop back and you may miss out on today's sp. It really depends on what you wanted to achieve with your holding before this potential deal was announced, whether you need the cash now, and what you will do with the cash if you do sell - Decisions, Decisions. ATB.
This risks of holding are that no formal offer is made from either Zurich or any other player within 4 weeks and that the offer made is lower than the current share price. Personally I am holding, gambling the opposite is true with around 70% certainty :) lol
Your attitude to risk should determine whether you take the money and run right now or wait it out.
As for what will happen if there is a takeover then it is my understanding terms of takeover will be revealed and that you may elect to take cash, stock (in zurich) or maybe both but that won't be confirmed until later.
I could be wrong though so take this as very informal advice.
Hello again Grayling - my only motive in popping on to this bb yesterday was to wish a holder well though this share has offered good trading opportunity over the last day or so. I saw the sun this morning and was going out for the day but it quickly disappeared and instead I am indoors watching a few shares while working.
I doubt whether it is worth you and I going into our pasts here as it was so long ago lol and there are so few posts on this bb that my history will still be here for all to see. What might be of interest though is that we have been talking about scrips, crips and drips divis elsewhere. Oddly enough, I first bought into this share at a time when I was reading somebody on another bb talking about them in relation to rsa and how great they were. No sooner had I bought in than the divi was axed and the poster stopped talking about rsa on the other bb lol. Bonz kind of guided us all through the rights issue and was not at all cross with me when I sold for a small profit the morning the rights shares hit my account and I think I was lucky that my brokers had been quite quick to credit the rights shares to my account in the morning because there were groans from others in the afternoon if I remember rightly..
You are right some shares need light trading, some need heavy trading and some little or none to eke a profit depending on when the individual first invested. The skill for the individual is in deciding when to do what and when to do nothing. I think the trouble is that sometimes people don't say what on earth they are doing with a share and that often gives a false impression to others. I'm on the verge of selling a share I have held for a while. Will I get flak on the bb if I say that. Might just slip off quietly into the sunset like so many others do. Nice uplift though in the price here for the long suffering holders. atb.
Spot on with your last comment QE. You have to do a little light trading even in a long term portfolio and certainly keep an eye out for any event which threatens the dividend and get out quick. I had been in RSA for a couple of years when the Ireland fiasco hit and got out straight away making a meagre 3.1% profit. However switching the money into FLG (now Aviva) and Phoenix has served me well with both shares doing OK and paying dividends in the meantime. Far better than leaving the cash in RSA and taking the rights issue. Even if Zurich take it out at 550p cash I am still better off.
Sorry to hear that but I suppose shares move up and down and you are usually canny elsewhere and buy at a keen price so if its only two or three where you've bought high and scraped breakeven rather than made lots then that's not bad going and better than a loss. I suppose I have cottoned on to the fact that long-term investing in a share for some means doing a little light trading of it as well when warranted. atb.
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