# ILP Shares



## TLC (30 Mar 2011)

I have some shares - not many - but what happens to the share holders if /when the state takes over?


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## horusd (30 Mar 2011)

Dilution of share value & possible complete write-off of share value depending how much the state takes over.


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## Brendan Burgess (30 Mar 2011)

In the case of Anglo Irish Bank, the shares lost all their value. 

In the case of Bank of Ireland which is much more relevant to the ILP case, the state put in more money through the purchase of shares and so it reduced the value of the shares. 

Brendan


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## TLC (30 Mar 2011)

Oh No!  Not that I was doing anything with them it's only about 350 shares, so I'll just keep them & see what happens. Maybe in 20 years time they might be worth a few bob!


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## Duke of Marmalade (30 Mar 2011)

Two possible scenarios.

1)  Nationalisation (i.e. outright confiscation).  This was the Anglo route.  In this case you will be entitled to compensation when some adjudicator eventually decides what was the worth of the confiscated shares.  Anglo is yet to be decided.  I presume the adjudicator will be assessing their perceived value at the time of confiscation, in which case recent share prices should be some indicator.

2)  Purchasing additional shares and leaving the existing shares in float.  This was the BoI/AIB route.  In this case the value of the shares post the State intervention is in theory a mix of their value before and the price at which they are purchased.  If these are the same then in theory no change.  If the State buys at more than the closing market price then the shares should in theory go up in price and vice versa.  

And this is what makes the process so very politically sensitive.  

If this route is chosen then the State, from a PR perspective, is caught between purchasing new shares at 70c which was the price before the story broke, or at 38c which is the price at which they were suspended.  70c would seem more fair but the immediate result would be a bounce in the share price back towards 70c or even higher as sentiment would be good.  Not very good headline _"shares soar 100% on State intervention"._ No wonder shares have been suspended.

I agree with Brendan that probably the second route may be chosen but it doesn't have the same logic as the BoI/AIB cases.  In these latter the State hopes to rehabilitate the shares and sell them back, a market float helps.

In the case of ILP, the shares of the holding company will never be sold back.  What would be logical to happen is for the State to sell the life company and then merge the bank with EBS.  No obvious reason in my mind to keep a market float in the shares of the  holding company.  This could push us towards Option (1) above.


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## Smart_Saver (30 Mar 2011)

According to reports on the Radio this morning - the shares are virtually  worthless (right now). so no harm to hold onto them. Maybe they will be a collectors item in 20 years.


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## farmerette (30 Mar 2011)

i sold all my irish life shares yesterday morning at 11 am , cant rememer how much they were worth , all i know for certain is that in december i bought 500 euro worth and yesterday the same shares were worth 276 euro after all the various stockbroker and state duties were paid  , my question is this , will i get my 276 or does it take a few days for transactions to clear


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## horusd (30 Mar 2011)

farmerette said:


> i sold all my irish life shares yesterday morning at 11 am , cant rememer how much they were worth , all i know for certain is that in december i bought 500 euro worth and yesterday the same shares were worth 276 euro after all the various stockbroker and state duties were paid ,* my question is this , will i get my 276 or does it take a few days for transactions to clear*


 

I presume you sold em online? If so these trades are generally instant. Assuming the sale went thro (and there wouldn't be any reason not to) then you should get your money.


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## Wren100 (30 Mar 2011)

Does anyone know if draughts bought in TSB are ok?  I bought one for 8,000 euro yesterday, and I'm getting a really sick feeling about it being honoured.


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## Duke of Marmalade (30 Mar 2011)

Wren100 said:


> Does anyone know if draughts bought in TSB are ok? I bought one for 8,000 euro yesterday, and I'm getting a really sick feeling about it being honoured.


Absolutely no problem.


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## Wren100 (30 Mar 2011)

Thanks, Duke.  Ain't panic wonderful?


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## JBF (14 May 2011)

*Il&p shares*

Hai, i am holding *10000 shares in IL&P*, which i bought at a price of .90 cent /shares through  irish online stockbrokers. now its worth only .13 cent / share.heard about nationalising  or selling off of bank.....

-anybody knows what will happen to shares then please?
-will i keep this shares or sell it for nothing now?

all suggetions will be appreciated. plz reply


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## Brendan Burgess (14 May 2011)

JBF said:


> Hai, i am holding *10000 shares in IL&P*, which i bought at a price of .90 cent /shares through  irish online stockbrokers. now its worth only .13 cent / share.heard about nationalising  or selling off of bank.....
> 
> -anybody knows what will happen to shares then please?
> -will i keep this shares or sell it for nothing now?
> ...



We do not discuss share prices on askaboutmone. 

Your other questions have been answered already in the thread


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