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Realistbear

A & L Dropping Below The "offer" Price + Dividend

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ALL & LEICS (LSE:AL.L)

Last Trade: 312.00 p

Trade Time: 3:33PM

Change: 12.50 (3.85%)

IIRC the "offer" from the Santander Group (not Santana...) is 2.99 plus a "divi" of 18p. If that is a done deal trhen it might pay to buy a few million shares at the current price of 312p? Or, is the deal FAR FAR from a wrap and may yet collapse? If it does then A&L are finished along with New Labour because run number 2 will begin.

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The deal still needs to be approved by shareholders of Santander and A&L at their AGMs in September, with the final deal due to complete in October. It's not a done deal but it's unlikely anyone will outbid and Santander has a lot of money and is keen to expand its UK presence. It's more interested in the A&L branch network and small business stuff than it is in any other parts of the business.

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Wasn't the offer based on the value of Santander shares? I.e one Santander share for three A & L shares. Therefore if the Santander shares drop, then does the value of the offer as well? Or was it fixed at the relative values of the shares at a specific time?

Or am I completely wrong?

Edited by Free Thinker

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I would have thought A&L would be worth a lot less come Oct - bit like those arab state funds buying into US banks back in Jan before the banks announced all their losses... well, not all? ;)

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Santander will be able to name it's price, the current price is what it is an offer. I bet the actual price it pays will be far lower, if it even buys it at all.

That's my thought too. The inevitable continuing stream of 'bad' news we can expect on the UK housing market in the coming months will make A&L less and less attractive, especially if B&B get into trouble (they are having an egm tomorrow to vote on the 55p rights issue - shares currently trading at 48.25 p .....)

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Wasn't the offer based on the value of Santander shares? I.e one Santander share for three A & L shares. Therefore if the Santander shares drop, then does the value of the offer as well? Or was it fixed at the relative values of the shares at a specific time?

Or am I completely wrong?

No, your right. A&L shareholders will get one Santander share for every three A&L ones. Although Santander shares trade in London, they can't be settled through Crest, so you'll end up with Crest depository interests (CDIs), representing shares in Santander.

Satander is ~$18 ~= £9 ~= £3 per A&L share at the moment

Edited by dryrot

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Guest Mr Parry

Just out of interest, what are Barclay's shares valued at presently? 265p?

Why would AL. be worth more?

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Just out of interest, what are Barclay's shares valued at presently? 265p?

Why would AL. be worth more?

now - where to start......................

Barclays are about 266p per share - if you multiply the cost of each share by the NUMBER of shares you get the Market Capitalisaation - which for Barclays is about £17.5Billion

A&L share price is 317p however there are far fewer shares and their market cap is £1.3 Billion

so they are really not valued more

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Just out of interest, what are Barclay's shares valued at presently? 265p?

Why would AL. be worth more?

$2.6 trillion in CDS's?

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I would have thought A&L would be worth a lot less come Oct - bit like those arab state funds buying into US banks back in Jan before the banks announced all their losses... well, not all? ;)

Yeah, but who's to say that Santander won't be worth a whole lot less too? How many CDOs have they got? Isn't the Spanish mortgage market in a tailspin?

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Guest Mr Parry
now - where to start......................

Barclays are about 266p per share - if you multiply the cost of each share by the NUMBER of shares you get the Market Capitalisaation - which for Barclays is about £17.5Billion

A&L share price is 317p however there are far fewer shares and their market cap is £1.3 Billion

so they are really not valued more

So, it's still an averaging thing. On average Barclay's is worth less per unit of company than A&L? Suggesting AL is a better business?

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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