Abbey Nat. Share Discussion Threads

[impecunious] 17/10/2004 08:23

Surely now this is a done deal the SCH's shares could rise materially further?

As recently as January and again in April they stood at the equivalent of £6-65.
Earlier in the year, I think they anounced record resulkts (something like £2 bilion profit). They fell back when then the news of their bid came out. I believe there were feasr of an auction and SCH being forced to overpay.

However, as it transpires, there was no auction. Arguably, SCH got a bargain. Furthermore, it has now diversified its risk which was previously focused on Spain and S. America. This diversification presumably makes them a safer play and consequently perhaps the institutuions will accept a lower PE, etc..

Furthermore, the acquisition makes them a bigger player (one of the top ten global banks?). Again, another reason for the institutions with gobal funds to want their shares.

Just a few thoughts - and reasons for hoping that we could see ANL shares rise beyond the current 603.5p prior to the conversion to SCH shares next month.

[dvda] 15/10/2004 15:30

"Abbey’s special dividend of 25 pence plus 6 pence for dividend differential is expected to be paid on 14 December 2004."

[daz1966] 15/10/2004 15:21

Could someone tell me when we get the 31p divi
Thanks

[dvda] 15/10/2004 13:10

Maddox

Agreed - it's not a precise science. I was just trying to get across the point that you wouldn't expect SAN's cap to stay at c. 40 bln euros, thus leaving the share price to drop from c. 8.30 to 6.66 overnight.

[maddox] 14/10/2004 19:34

dvda,

It will depend upon how the City and other SAN investors value the combined entity. The key point is whether they will attribute the same p/e value to the earnings of the combined group?

Regards, Maddox

[dvda] 14/10/2004 17:52

ian

Not sure that makes sense. SAN is worth 40 bln euros, buys something worth £9 bln and afterwards is still worth 40 bln euros? I think you will find that SAN's market cap will increase to reflect the value of its purchase and as such there won't be a material impact on its shareprice.

[ianproud] 14/10/2004 17:41

I attended the EGM. To say it was lively would be an understatement. However a Banco Santander official told me that the company has about 4.5 billion shares on issue with a market cap of €40 billion. To that, once the deal is completed, will be added 1482.999M new shares for the existing Abbey shareholders so there will be about 6,000 million Santander shares on issue. With this dilution, and assuming no great change in Santander's market cap, the shares will be worth about €6.66 each or £4.57 each. Even with the sweetener of 31p per share and the promise of savings over the next two or three years, I think Santander will have its work cut out to persuade the market the shares should be back at £6 once the deal is complete. At today's price of €8.3 for the Santander shares, even the Santander shareholders must be wondering if the €1.6 drop in value will be worth it.
Of course some of my assumptions could be wrong but the above is IMHO

[elimall] 14/10/2004 15:24

What happen next if they backed the resolution anybody wish to illustrate me please. thanks.

[broadwood] 14/10/2004 15:22

Back over £6 - presumably they voted for the Resolution at the EGM today.

[dm1] 14/10/2004 15:22

I assume the current rise is due to the vote being carried?

[7buttery] 14/10/2004 14:53

Next month ABBEY are offering 7% gross on there regular savings account.

[tulk] 10/10/2004 02:37

Could someone post where to research Sanstander banco, and access to its price development, projects etc...

I have heard from some who work for bank, --more precious fund&bond -- and I have learnt that they, although moving around in a very large Swiss business, were totally surprised on Sanstander's proposal, and so more surprised as Sanstander released its tie with RBS to get Abbey Nat. They were still thinking Sanstander of a state, where few years ago it was virtually a "MESS", but that they stands so close to RBS, and even preparing to break up its long termed tie to get Abbey, all that proves Sanstander has something serious under its belt, and could be truely a serious competitor.

From the thought of a phonix rising from the ash, which virtually "hijacks" a bank in the middle of UK banking business scene without much resistance. It might be worth to ask, was would it worth in the next three year time? In opposit to UK bank the like of EGG which tried and failed to expand its business on the continent, Bank from the continent has an easier game due to the openess of clients, friendly credit card user, interest rate, less burocracy etc.(I would not say EGG is less attractive, depends on which price level you have got it) It also has the advantage of having on the door step a cheaper, tough & hard-working but still European & very experienced work force, and so at the moment does not rely on over-sea call centre like other UK's which stirs already a lot of troubles for some UK companies, which have went already this out-sourcing path, and still haven't won much.

It is clear to me that there is a lot of troubles with dealling Abbey's share when it now turn Spanish, tax is higher, paper work etc but what is tax on dividence when the share price could reach a lot higher if possible due to better management, better prospect, better and better ... They have surprised the bigger bank once, how puts up the hand and swear they could not do it again?

But what do I know about banking, I only follow the trend of price and invest. perhaps someone with more banking experience could express their opinion and educate us in this direction. What has made them so strong so fast? Surely not from money laundering for the Sizilian & Italian Mafiosos --are they still there?--.

PS:
Perhaps I should mention that I was thinking also of Freeserve, which was bought by WANNADOO, a "pile of poo" like some posters used to call it and dislike and urged other to abandon the sinking ship. Well, it has more then quadrouple its price from over 2 Euros replacement for Freeserve share and it was buyout by Fance Telecom for 8.8 Euros in less than 3 years later

[davewilk] 08/10/2004 09:20

as I understand it the divi will be paid on acquistion day which should be 12th november. in other words you only get it if you stay in and accept the deal and santander shares

[daz1966] 08/10/2004 08:43

When do we get the 31p divi, if all goes well.

[wtacraig3] 06/10/2004 15:43

Continues onwards and upwards. Is it cos the Santander price is rising anyone know, or for some other reason - like an alternative bid?

[jonak] 05/10/2004 23:45

Hey thanks Raxzi

[xjks] 05/10/2004 08:30

The price rise yesterday was due to Santander shares rising.

8.18 / 1.45 + 31p =595p

[saturn5] 04/10/2004 20:20

I keep praying that somebody (anybody) brings in a rival bid which the board will have to present to shareholders. All the shareholders I have spoken to are not happy with the Spanish offer. Surely ANL deserves an auction.

[broadwood] 04/10/2004 20:11

No - talk today that BancoSan will raise the cash element of its offer, giving fewer shares.

[wtacraig3] 04/10/2004 17:35

Nice rise again today. Is there something going on behind the scenes you think driving the price? A rival approach perhaps?

[lauders] 01/10/2004 11:30

My ADSL is unavailable, so am paying by the minute and cannot go through all the posts on the BB, so would appreciate it if anyone is willing/able to answer the following qustions:

1) Is it worth holding a small quantity (230 odd) of ANL shares after the 11th November if I am not a UK resident? I see that the offer to sell small quantities of shares without deducting costs is for UK residents only.

2) Is it better to sell the shares before the 11th November and just biting the bullet.

3) I haven't seen anything re: the Alternative Dividend Plan that I have been using to build-up my ANL position with since it was introduced. Bought 200 shares when listed on the stock exchange back in July 1989. Enjoyed the dividends and recouped all my small original investment a while back. I don't think Banco Santander will continue this service.

4) I note that if you sell the new Banco Santander shares holders will have to file a Spanish tax return. See section 19 of Part 3 of the Scheme Document that shareholders should have received. What a hassle for a small holding. Is it worth it?

I would be very interested to know what other overseas holders (not ordinarily resident in the UK holders) are planning to do and any reasons for their actions.

Thank you for any assistance you may be able to provide. I will look into the BB later to see if anyone has been kind enough to reply and give their opinion.

Cheers and best wishes to all.

[broadwood] 01/10/2004 09:50

boggles - pretty wide of the mark.

Santander have been through the books with the finest of toothcombs and made their offer accordingly. As such , it underpins the price.

[raxzi] 30/9/2004 20:16

jonak
I understand you can. Odd that a share listed on a foreign exchange is OK but one on AIM is not.


mike
This offer of a 6.5% pa/AER.
Does not this mean that any money invested brings a return which if annualised would equal 6.5%?
On the first monthly payment would this be 6.5%, on the second (11/12ths of 6.5%) and so on diminishing?

[jonak] 30/9/2004 19:58

currently holding ANL in an ISA - any one out there know if I can hold Santander shares in an ISA ?

[machoolahan] 30/9/2004 19:43

:D - are you short?