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Hi again BrightSideWalker, Thanks for your thanks, and I'm glad what's in our answers is of some help. In my haste, I omitted to mention what's probably one of the most "key" announcements. It's the one on 22 July at 07:00, "Publication of Scheme Document". It's a bit of a long read (aren't they all?!?), but right near the beginning it's got stuff such as setting out the timetable for the whole process, with meeting dates, payment dates, etc. To save scrolling through all the pages of announcements, hopefully this will take you straight to it:- https://www.lse.co.uk/rns/MRW/publication-of-scheme-document-4ltun7jfry0jdmr.html Once again, all the best with whatever you decide. Mike.
Ps if you want a home for your proceeds take a look at Saga. It has some risk but there is massive recovery potential there now and billionaire ex owner has just invested £150 million of his own money to stsbalise matters recently... And Roger de Hann is no fool. You can see more on Saga board like this now. I contribute to it often as capitain birdseye. SHIP AHOY!
Thank you for your thanks! Only point maybe not covered is timing of rrceipt of cash proceeds. If you sell tomorrow you'll have cash in 10 days time whereas bid battle uncertainty could mean 10 weeks wait for cash if indeed it comes at all? Something else to ponder on, maybe!
Thank you all for your illuminating answers and great suggestions. There's a lot to think about, I'll surely ponder the scenarios that you pointed out MikeM14, and look at the link you provided too. I appreciate your comprehensive answer.
I'm tempted to 'hold out for a further sweetener' (haha) with you, Idad. I'll keep a sharp eye on the price and see what happens. In the end I think I'll go with Kingalf's sensible suggestion of half now, half later.
Again, thanks guys. Your answers have come together and given me a complete and very helpful view of things. Cheers to you all and best of luck =)
Hi BrightSideWalker, Like you, I held Morrison shares for several years as an investment, and enjoyed receiving the dividends. All the terms of the Fortress offer are in the "Scheme Document", and are included in an "RNS" (Regulatory News Service) announcement. To see the announcement, if you press the "RNS" button at the top of this page, you'll see all the relevant announcements, and the key one is one at 07:00 on 5 July titled "Recommended Offer for Wm Morrison Supermarkets PLC". To save you scrolling through them all, this should take you directly to it:- https://www.lse.co.uk/rns/MRW/recommended-offer-for-wm-morrison-supermarkets-plc-n8ggsf8f4z5x888.html To put it in simple context, this is a "friendly" not a "hostile" offer, which means that the BoD (Board of Directors) of Morrison have recommended that Morrison shareholders accept it. That said, it still needs shareholders to vote on it, and pass it by a certain percentage (I believe it's 75%). There is a Court hearing and a General Meeting of Morrison, which I think are due to take place on 16 August, which is where this vote is taken. Also, because this is a "cash" offer, if this bid goes through you *will* be liquidated whether you like it or not, and you will be left with no shares, but £2-52 cash for each share, plus 2p dividend, as cash, for each share. You shouldn't have to pay any broker/platform fee. However, there are now so many possibilities of what could happen. I'll try to list them in a logical order:- (i) No other bids emerge, this Fortress bid gets voted-through by shareholders, then in due course you'll get your cash. (ii) This Fortress bid fails to get voted-through by shareholders, then:- (iii) Fortress come back with a higher bid, which *does* get voted-through by shareholders, then in due course you'll get your higher amount of cash, or (iv) Fortress don't come back with a higher bid (effectively they walk away), then with no other bids, the share price is likely to fall significantly, or (v) Fortress don't come back with a higher bid, and another bid from someone else comes along. This new bid would likely have to be significantly higher than the current "£2-54" bid or else shareholders wouldn't vote for it. There are other combinations as well, that could happen, such as a higher bid from someone else comes *before* the present Fortress bid has to be voted on. Whatever you do, I'm afraid it's a bit of a gamble. There will be those that say that the present share price, above £2-70, is because there are those in the market that *know* that a higher bid is going to come along. There will also be those that opt for the certainty of selling now and getting a price considerably above the present "recommended" offer of £2-54. Good luck with whatever you decide. Mike.
BrightSideWalker you could always sell half your position and run the remaining to see what happens, at least that way, if the bid didn't get the necessary 75% approval and the price subsequently dropped to sub £2.00 in my opinion you'd be sitting on a nice healthy average price. If, in the unlikely scenario, in my opinion, all the players start to outbid themselves and this heads further north, you'll still benefit. It's a win win, but you do need to do something, nothing worse then seeing a profit evaporate in front of your eyes.
If bid goes through you will automatically get proceeds in cash into your account and shares will disappear from your account accordingly. There should be no or little stockbroker fees applicable If eventual bid fails the share price will fall back Maybe steeply say to 220p...depends on liklehood of another bid later. You either sell now and pay broker commission as a result or hold on for higher bid being successful. You either gamble on more jam tomorrow or take jam today. Your choice but I'm greedy for jam so will hold out for a further sweetener for now. Whatever good luck to you!
Hi guys, I've never posted before but I feel I need to reach out to fellow investors at this point. I'll try and keep it short.
I bought some MRW shares a few years back for the dividends. I don't know much about the stock market or trading in general, but since saving rates were and still are so poor, I decided to invest a little.
I got a notification from my broker essentially stating Fortress' acquisition intentions of £2.52 p/s plus £0.02 p/s special dividend for a total of £2.54 per share. Does this mean if I continue to hold my shares, I'll be liquidated at the point of takeover for £2.54 p/s? or will my shares 'convert' (sorry don't know the lingo) into shares of the new company (Fortress)?
If I am to be liquidated, would it not be wise to cash out now at over £2.70?
Also, the Brokers message seemed so final, but from talk on here, it sounds like this bid could still be thwarted (or fall through)?
I know no one can give me financial advice. I'm just trying to get my head around the situation so I can make what I feel the best decision is for me.