A & L Stock Going Down

[Realistbear]

ALL & LEICS (LSE:AL.L)

Last Trade: 318.25 p

Trade Time: 8:25AM

Change: 6.25 (1.93%)

Given that the deal was 2.99 a share it seems that a fall would be natural. But why no news on this? NR # 2?

Edited July 16, 2008 by Realistbear

[detached]

Given that the deal was 2.99 a share it seems that a fall would be natural. But why no news on this? NR # 2?

It seems that some in the City have yet to fully appreciate the unfolding HPC and were betting on a higher bid from another bank ........

With the bid closing in October (all paper offer BTW - one Santander share for 2 A&L), I reckon we could even see the cunning Spaniards reducing their offer should the current stream of bear news continue at the same pace through the summer.

I have my suspicion about the deal though. What about if Santander's true motive in acquiring billions worth of UK mortgages is to 'place' them with the ECB to obtain 'cheap' liquidity to fund new deals in South America where they have a growing and highly profitable presence .....

There is another aspect of the deal little reported by the enthusiastic media - the inevitable thousands of redundancies when A&L is 'synergised' with Abbey. Santander have been pretty ruthless in cutting jobs at Abbey and won't hesitate to do the same at A&L - especially as HPC unfolds in the UK and Spain.....

[jonewer]

RBS looking flakier and flakier........ Oh dear. Is it move my money time?

[insidetrack]

We are watching a danse macabre in the financial sector. The music is being played by a motley crew and the participants are lurching around all over the place. We know what happens in the end though.

[Guest Mr Parry]

We are watching a danse macabre in the financial sector. The music is being played by a motley crew and the participants are lurching around all over the place. We know what happens in the end though.

Mumsy picks them up before midnight, in the Range Rover.

[insidetrack]

Mumsy picks them up before midnight, in the Range Rover.

That's the one!

Except she's had half a bottle of gin and slams into a lamppost on the way home.

[stuckmojo]

We are watching a danse macabre in the financial sector. The music is being played by a motley crew and the participants are lurching around all over the place. We know what happens in the end though.

I always liked Motley Crue. I prefer Megadeth though

[mdman]

I very much doubt any of the big four will have NR style trouble.If one went under,the economic repercussions would be massive.However,I wouldn't be rushing to buy the stock.

But the US has Fannie Mae/ Freddie Mac. It doesn't get much bigger than that. We're a few months behind in the crash cycle.

HBOS now nearly at half the price that triggered the FSA investigation (and well below rights issue price)

[Guest Mr Parry]

That's the one!

Except she's had half a bottle of gin and slams into a lamppost on the way home.

Oh yes, IT. That conjures some lovely imagery.

[Matt Bear]

As this is essentially a share for share deal, A+L share price is just following Santander share price.

[Converted Lurker]

It seems that some in the City have yet to fully appreciate the unfolding HPC and were betting on a higher bid from another bank ........

With the bid closing in October (all paper offer BTW - one Santander share for 2 A&L), I reckon we could even see the cunning Spaniards reducing their offer should the current stream of bear news continue at the same pace through the summer.

I have my suspicion about the deal though. What about if Santander's true motive in acquiring billions worth of UK mortgages is to 'place' them with the ECB to obtain 'cheap' liquidity to fund new deals in South America where they have a growing and highly profitable presence .....

There is another aspect of the deal little reported by the enthusiastic media - the inevitable thousands of redundancies when A&L is 'synergised' with Abbey. Santander have been pretty ruthless in cutting jobs at Abbey and won't hesitate to do the same at A&L - especially as HPC unfolds in the UK and Spain.....

I concur with your suspicions and would extend the thinking a bit further, growing the base of Santander by acquisitions is a fantastic way of growing (albeit sideways) in this market, it also gives a brilliant misdirection opportunity unmissable from a p.r./marketing standpoint. Santander are yet to disclose their losses in the sub prime/MBS market, shifting their sand every six months or so offers a lot of evasion, the largest retail bank in Spain has not escaped the meltdown in property related issues/losses in Spain which other than Aus has ran amok in terms of houses being unaffordable. Those huge white washed towns/cites built in Spain have been funded equally by 'Saint Bank of Santander'. The sight of Brown grovelling re Santander was nauseous, there was a time only a few years back when such a T/O by a foreign institution would have been reviled and repelled in equal measures. The job loses will be relatively huge, not just in A&L but also in Abbey...as you say, no mention of this

[Joey Buttafueco Jr]

As this is essentially a share for share deal, A+L share price is just following Santander share price.

Where are you seeing this correlation?

[ParticleMan]

As this is essentially a share for share deal, A+L share price is just following Santander share price.

"Sounds like a fair swap to me". One piece broken BTL lender nee carpetbagged building society in exchange for one piece retail bank knee deep in Spanish real-estate.

[ParticleMan]

The sight of Brown grovelling re Santander was nauseous, there was a time only a few years back when such a T/O by a foreign institution would have been reviled and repelled in equal measures.

Oh I dunno. These guys (A+L management) have managed to steal more Spanish gold than Drake himself.

(I've got a Jolly Roger, it's a black and white and vast; so get out of your skull and crossbones, and I'll run it up your mast!)

edit to add: variations on a theme...

(It's fun to charter an accountant; And sail the wide accountancy; To find, explore the funds offshore; And skirt the shoals of bankruptcy!)

Edited July 16, 2008 by ParticleMan

[Matt Bear]

Where are you seeing this correlation?

Looking at the intra-day charts for the past few days you can see AL pretty much follows the Banco Santander share price.

BNC is the EPIC for Banco Santander shares traded via the LSE.

[detached]

Santander are yet to disclose their losses in the sub prime/MBS market, shifting their sand every six months or so offers a lot of evasion, the largest retail bank in Spain has not escaped the meltdown in property related issues/losses in Spain which other than Aus has ran amok in terms of houses being unaffordable. Those huge white washed towns/cites built in Spain have been funded equally by 'Saint Bank of Santander'.

Agree. Reading the gushing prose of UK papers on this modern-day Conquistador, you'd think they are somehow insulated from the Spanish HPC and its impact on the wider economy, not to mention the effect of a recessionary climate in Northern Europe on the vital tourist industry.

Also wonder whether Santander have any exposure to Ferrovial, the highly-indebted construction group that owns BAA ..

[1929crash]

I concur with your suspicions and would extend the thinking a bit further, growing the base of Santander by acquisitions is a fantastic way of growing (albeit sideways) in this market, it also gives a brilliant misdirection opportunity unmissable from a p.r./marketing standpoint. Santander are yet to disclose their losses in the sub prime/MBS market, shifting their sand every six months or so offers a lot of evasion, the largest retail bank in Spain has not escaped the meltdown in property related issues/losses in Spain which other than Aus has ran amok in terms of houses being unaffordable. Those huge white washed towns/cites built in Spain have been funded equally by 'Saint Bank of Santander'. The sight of Brown grovelling re Santander was nauseous, there was a time only a few years back when such a T/O by a foreign institution would have been reviled and repelled in equal measures. The job loses will be relatively huge, not just in A&L but also in Abbey...as you say, no mention of this

Absolutely, totally agree.