Alliance & Leicester Share Discussion Threads

[little beaker] 14/7/2008 11:42

Agreed takeover:

Santander confirms 1.259 bln pound takeover offer for Alliance & Leicester

LONDON (Thomson Financial) - Spanish bank Santander and Alliance & Leicester
Plc. said they have agreed to Santander acquiring the UK's seventh largest bank
in a recommended 299 pence takeover offer.
Alliance & Leicester shareholders will receive one Santander shares for
every three A&L shares.
The 1.259 billion pound offer, or 299 pence a share, represents a premium of
approximately 36.4 percent based on the closing price of A&L's shares on Friday
night.

[sandbank] 14/7/2008 11:36

JENNYJ: Your post is a particularly perceptive one, amongst many interesting thoughts on this thread today.

Last week AL.'s price appeared to be levitating without any visible means of support whilst much more solid concerns like LLOY and BARC were being shorted. Your theory would indeed explain why the price remained so resistant to a fall - despite all the transatlantic turmoil.

[daveram13] 14/7/2008 11:32

Hope HSBC & Lloyds TSB make up an auction and up the ante on Santander. The price is ridiculously low notwithstanding the credit crunch!
Not to mention those that have expressed an interest such as National Australia Group, Agricole, UNISYS (already doing their processing and domiciled together), Co-op etc.

[iomhere] 14/7/2008 11:28

I don't think you can assume that without a bid AL would necessarily maintain its 18p interim dividend. My reading is that the bidder is offering 299p and doesn't mind 18p of share value not being part of what it gets.

[lonrho] 14/7/2008 11:28

lloyds ought to seriously consider counterbidding at these prices,according to sandy chen they could take 300m out of the cost base,as a rough guide of a p/e of ten less tax this equates to 2.1b which is 50% more than the bid value,future normalised profits of 600m plus say 1.4 billion of current net assets are therefore in there for free.Iknow lloyds are tight but even in these markets that must look enticing on a medium term view.

[tricky1992000] 14/7/2008 11:25

al.

is as solid as one of these things

[jennyj] 14/7/2008 11:21

"If A&L weren't in any trouble why would they be considering such a low bid??"

IMO a nod was given about margins on a few hedgefunds, a nod was placed here and a nod was placed there ;-)

Result, hedge fund margin called and their terrorism shut down.

Re RBS' decisions in singapore - will turn out to be one of the best descisions since buffett took a stake in coca cola during the new coke hedge fund fire sales.

[diku] 14/7/2008 11:15

management protecting their egos...

[jazza] 14/7/2008 11:13

The bid won't work at 317p if the market reaction is anything to go by.


Looks like rejection or a counter-bid are expected.

[loganair] 14/7/2008 11:10

If A&L weren't in any trouble why would they be considering such a low bid??

[diku] 14/7/2008 11:07

well the management declined the offer of 1200p over a year ago...but now they are in advanced talks at low levels...that is stupid and corrupt with ones egos...

[jennyj] 14/7/2008 11:06

In my country there is problem,
and that problem is unreg'ded hedgehogs
they sell lots of stock naked
they never give it back

throw hedgehogs down the well
so my country can be free
we can make investing easy
and we have a big party

[daveram13] 14/7/2008 11:02

Thanks, I agree but how come they mentioned 317P?

[jennyj] 14/7/2008 11:00

because they know the bid would have to be more then twice what it is now.

A+L are so secure they dont need a RI and can even pay the divi. Less M2m funds then b+b

[daveram13] 14/7/2008 10:57

Why are there large volumes being bought circa 333Pence?

[farsight] 14/7/2008 10:52

Thanks tricky. Hey, I'm regretting it already but that'll do me for today.

jenny: it hacks me off to think that people short a share by borrowing my shares without me knowing.

[lonrho] 14/7/2008 10:17

its strange the company named the price but not the bidder,it looks like they are saying to potential acquirors come and buy us and here's the starting price for you to beat.

[davron8] 14/7/2008 10:14

In the price shown in the RNS , I find it interesting that the interim is to be paid and expected to be 18p, the same as last year. With this in mind it does not appear to me that A&L has serious prob;lems so the offer price should be very much higher.

[jennyj] 14/7/2008 10:11

Every body put your stock under offer at £20 this will bend the SETS order book ;-)

Plus your stock cant be borrowed if its on offer ;-)

Two hedge funds bankrupted this morning due to their phantom A+L positions. More to come...

[leedskier] 14/7/2008 10:08

Sky's business report said the City believes it is Bank Santander. ' No one is taking bets against it'

[tricky1992000] 14/7/2008 10:08

spob, Credit Agricole as well as santander, when Credit Agricole were asked about a potential bid, they refused to comment.