VESA gets the OK to increase holding

[robking]

How far off the point will they be when they can forcibly buy up all remaining shares?

If somebody makes a takeover bid, they have to offer the same price to all shareholders, the offer price may be increased several times in order to get enough shareholders with enough shares to agree to sell but everybody will get the final price when the offer becomes 'unconditional' which means that the bidder has committed to go through with it.
Takeovers usually become unconditional when the bidder has secured over 50% of the total share capital and has control. Once he has control there's not much point in holding out but if the bidder can't get hold out shareholders to agree to sell their shares to him, he will have to have to suffer minority shareholders on his books, but because he has control, they can't stop him doing what he wants.
Minority shareholders can always take the money that was on the table when they want, but if the bidder has over 95% of the shares, he can go to court to get permission to compulsorily purchase the remaining shares at the unconditional price.

[KnowItAll]

In the UK the threshold for a mandatory bid is 30%. At this point the shareholder has effective control of the company and this can affect the share price. A mandatory bid gives minority shareholders the right to sell their shares to the new controlling shareholder. The price would have to match the highest price paid by the bidder in twelve months previous. For VESA this is currently around £4.30 paid in January of this year.

[robking]

In the UK the threshold for a mandatory bid is 30%. At this point the shareholder has effective control of the company and this can affect the share price. A mandatory bid gives minority shareholders the right to sell their shares to the new controlling shareholder. The price would have to match the highest price paid by the bidder in twelve months previous. For VESA this is currently around £4.30 paid in January of this year.

Yes, between £4.50-£5 a share should get it away, I can't see a rival bidder emerging.
They might get some of their money back quite quickly by selling the rump of Royal Mail on to someone else after separating it from GLS and Parcelforce which are obviously what they're really after.

[KnowItAll]

Yeah but the share price has been going down since then, so the longer they wait, the less they need to pay for minority shares. That being the case, it would be very odd if they got to 30% before March, when they can save over a pound a share. It'll depend how cheaply they pick up the shares to take them to 30%. November 17th, poor results and ongoing IA may tip the price too low to resist. It's all speculation at the moment.

[Dorset Plodder]

Shame we haven't still got all our shares, although obviously they'd be worth a lot less than when I sold mine at £5.60, anyway, when we were all allocated them, posties collectively held 10% of the business didn't they? + Those who bought their own.Thats a lot of voting power and it would have to be a hostile take over if any.

I always thought the CWU lost out when they didn't try and set up some kind of Voting Block with all the Posties shares .... Hindsights a wonderful thing!

[iHateD2Ds]

It stinks . Isn’t schapps one of Thompsons mates?

No way has Thompson got any mates. Connections, maybe, mates, no way!

Don't you know you can buy mates with cash but obviously not happiness.

[walthmstowman]

I’m a little bit surprised the CWU update didn’t mention this last night.