Of tsb to £

Lloyds has promised to compensate thousands of investors who bought shares in TSB when it floated on the stock market, if the challenger bank is snapped up by Spanish suitor Banco Sabadell before June 25.Last week Barcelona-based Sabadell launched a surprise £1.7billion bid for TSB, causing its shares to surge by almost a quarter.But this immediately raised concerns that investors could lose out on a loyalty bonus promised to them by Lloyds when it floated TSB last June.
Last week Barcelona-based Sabadell launched a surprise £1.7billion bid for TSB, causing its shares to surge by almost a quarterThe state-backed lender offered investors one bonus share for every 20 shares they bought up to a maximum of £2,000, as long as they hang on to them for 12 months.TSB’s 8,500 employees – including its chief executive Paul Pester – were also given £100 worth of shares, although they are not eligible for the bonus shares.
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As Banco Sabadell’s offer has come barely nine months after TSB floated, this has raised concerns that the investors will miss out on their bonus if a deal is pushed through quickly.But on Monday night Lloyds, which still owns 50 per cent of TSB, gave the Daily Mail a written assurance that investors will be fully compensated if this happens.A spokesman said: ‘If an offer made for TSB Banking Group goes wholly unconditional or closes prior to 25th June 2015, the group will, as is consistent with the terms of the bonus share scheme, ensure that investors who would have been entitled to bonus shares are fully compensated.‘Those investors will receive the cash value of those bonus shares at the applicable offer price.’The assurance means that thousands of retail investors are in line for a double windfall.Sabadell, which focuses on small and medium-sized firms in Spain, last week lodged a cash offer of 340p per share – a 31 per cent premium to the price it floated for last June.
Assurances: Lloyds, which still owns 50 per cent of TSB, gave the Daily Mail a written assurance that investors will be fully compensated if Banco Sabadell’s offer for TSB is pushed throughIt remains above last night’s closing price of 327.6p, down 0.4p.Industry sources have insisted that if Sabadell makes a formal offer by the April 9 deadline, it is unlikely the deal will be pushed through before June 25, the anniversary of the TSB float.Regulators including the Bank of England’s Prudential Regulation Authority, the Financial Conduct Authority, the Competition & Markets Authority and the Takeover Panel will have to vet the deal.The PRA stipulates it must have up to 60 working days to check the deal, but the process can last longer. This means that if Sabadell lodged a formal offer tomorrow, its 60 day review would elapse on June 9 – more than two weeks before TSB shareholders become eligible for their loyalty bonus. Last night one consumer campaigner welcomed Lloyds’ decision to offer a guarantee to retail investors but contrasted this with the bank’s treatment of thousands of bondholders.Lloyds is waiting for the green light from regulators to cancel high interest bonds it issued to thousands of investors in 2009, shortly after it received a £20.5billion bail out from taxpayers
New horizons: TSB’s 8,500 employees – including its chief executive Paul Pester – were also given £100 worth of shares, although they are not eligible for the bonus shares.The bonds – called Enhanced Capital Notes – were used by Lloyds to bolster its capital cushion without having to go cap in hand to taxpayers.They meant that, unlike Royal Bank of Scotland, Lloyds was not forced to continue paying billions of pounds to the government to insure its toxic assets through the Asset Protection Scheme.Mark Taber, who is leading a campaign on behalf of investors, said: ‘Bondholders are supposed to come above shareholders in the pecking order – Lloyds is not acting with any fairness towards investors who helped prop it up during the financial crisis.’

traded year

Shares in AO World fell sharply on Monday after chairman Richard Rose sold the bulk of his stake.Rose off-loaded nearly 5.6million shares – just under nine-tenths of his holding in the online white goods seller – on Friday for 180p each, pocketing £10million.He is left with 723,443 shares, which the company described as a ‘significant’ shareholding.AO’s price, which has plunged since it issued a profit warning in February, lost nearly 5 per cent to 182.1p.
Impact: Shares in AO World fell sharply on Monday after chairman Richard Rose (pictured) sold the bulk of his stakeThe sale was at a discount to the Friday close of 191.6p and substantially lower than the float price of 285p when it came to the market last year.
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John Roberts, the chief executive, said the sale came after the end of a post-float lock-up, forbidding directors from selling shares.‘Richard remains committed to the company both as a shareholder and its chairman,’ he said.Rose, who was previously chief executive of the Whittard tea company, also chairs wholesaler Booker Group.
Falling: AO’s share price, which has plunged since it issued a profit warning in February, lost nearly 5 per cent to 182.1p on MondayBolton-based AO was floated with an initial market value of £1.2billion, despite making less than £8million profit in 2013.It was not the only company to have a disappointing debut last year: others including Pets at Home and Saga have also traded below their offer price for much of the time since their floats.