ILP Shares
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Brendan Burgess
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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
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
Duke of Marmalade
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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.
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.
Smart_Saver
Registered User
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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.
farmerette
Registered User
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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.
Duke of Marmalade
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Absolutely no problem.
J
JBF
Guest
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
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
Brendan Burgess
Founder
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- 53,747