Insurer RSA ready to hold out for 600p-a-share bid from Zurich: The board of the FTSE 100 insurance giant RSA are understood to be pushing for a take-out price of at least 600p a share from potential bidders Zurich
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 ... ATB I hold 1750 RSA at 525p; old money 142p.
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.
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