Halifax windfall payout gets all clear
Tuesday 29 September 1998
Birmingham Midshires said that individual members will learn about the precise amount of their windfall at the beginning of November when the society is due to receive thetakeover documents.
It is expected that the society's 1.1m members will get Halifax shares worth between pounds 600 and pounds 800 each when the deal is completed in the spring.
Shareholders will have to vote on the Halifax takeover at a special meeting scheduled for 11 December in Birmingham.
Yesterday's decision by Peter Mandelson, Secretary of State for Trade and Industry, not to block the bid on competition grounds marks the end of a 13-month tussle for the control of the Birmingham Midshires.
Last August, the Royal Bank of Scotland agreed to buy the society for pounds 630m, but in March this year, Halifax trumped RBS's offer with a pounds 780m unsolicited bid.
However, Halifax, which converted into a bank last year, was prevented from opening talks with the society by an exclusivity agreement between Birmingham Midshires and RBS.
The stalemate was broken when the Yorkshire-based bank agreed to pay pounds 5m to scrap the agreement and compensate RBS.
The story took another twist when, after talks between the two boards, Halifax decided to reduce its original offer by pounds 30m to pounds 750m.
Birmingham Midshires has 112 branches and around 2,200 staff. In the first half of 1998, it posted a 22 per cent rise in underlying profits, boosted by a strong rise in mortgage business.
A spokesman for Halifax said yesterday that the bank was "pleased" with Mr Mandelson's decision.
He added that the society did not expect the takeover to be blocked on competition grounds.
- 1 Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
- 2 People all over the world are getting semicolon tattoos to draw attention to mental health
- 3 Van driver who comforted Clark Carlisle and called 999 after suicide attempt dies age 24
- 4 James Blunt was special guest on the highest-rating Top Gear episode ever
- 5 The biggest first date turnoff has been revealed
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
Sickness and disability benefits could be reduced by £30 a week as part of £12bn welfare cuts
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...