Comments on: Resolution investors pay for their own low-cost rights issue

By: David Laity

David Laity — Thu, 04 Nov 2010 16:24:14 +0000

I’ve just phoned the Computershare helpline and found out that my shareholding with Resolution which was worth £331 in July is now worth just £40! Nothing to do with the stock market value changing…just due to the share consolidation! This seems outrageous and even fraudulent! Please can anyone give me some advice on who to complain to about this? Is it possible to complain to the Financial Services Authority? I’ve tried complaining to Computershare but I think they are just the brokers and therefore aren’t liable.

A very frustrating situation! I’m glad I didn’t have a higher shareholding!!!

Any advice appreciated.

By: Rosemary Farr

Rosemary Farr — Fri, 08 Oct 2010 11:59:21 +0000

Was hoping my original FP shareholding would pay for my funeral. Then robbed of a nice coffin by Resolution. Doubt now if my shareholding will pay for a candle at my wake.

By: charlie palmer

charlie palmer — Fri, 06 Aug 2010 10:04:20 +0000

I run a financial adviser firm:
You might have lost money but we are living in a catastrophic bear market that is really in its eleventh year.
Look at the wood, not the trees: Resolution is a consolidator of life office businesses that are reducing at 20% per annum. Give Resolution time and they will be completely dominant in the sector and you the shareholder could make serious money from that monopoly situation. The life offices are generally very poorly run - that takeover is a great move.

By: Stew

Stew — Fri, 06 Aug 2010 08:35:47 +0000

I completely agree with what has been said, however with the view that there’s not really too much I can do about it I’ve taken the cashless option. Hopefully that should give me roughtly the value my 400 odd shares were worth prior to consolodation, but I’m not holding my breath.

By: Jayne

Jayne — Sat, 31 Jul 2010 15:43:13 +0000

Hi everyone,

Like you I am appalled at the treatment of the small investor - I had 2350 Friends Provident Shares (some free shares) purchased at £2.135, reduced to 2115 (90%) by Resolution. Never in my wildest dreams did I think they could be further reduced to 70 (30:1) conversion at current date £2.38 per share - value £166.60.
Can we report this to the office of Fair Trading? It does not seem right to be treated like this. I will not be puting any more money into Resolution for fear of losing even more of my hard earned cash. The Telegraph Article 26/10/2010 if you do a search on google says it all “It is only for the weathly small investor” and you will be asked for more money to fund their next aquisition later down the line.

By: Sbc

Sbc — Wed, 28 Jul 2010 13:52:51 +0000

Hi,
I have looked at a number of blogs and it would appear that I, like many of you, have been mugged by this deal with no way out other than to take the loss/es (including FP) on the chin. However, if I put more money in does anyone out there believe the shares will be worth more in the future? If this is being recommended for the big boys as a possible winner over the medium to longer term, why not the smaller investor?
Yes we have been commercially raped but is there a possible upside to this?

By: Martin Nuttall

Martin Nuttall — Mon, 26 Jul 2010 15:11:57 +0000

Hello Stevie

Thanks for your comments. I’m not exactly an expert but neither am I ignorant to the way the markets work, but the way this has come about has been an absolute shock….blackmail even!

I won’t be throwing good money after bad and will be a little more choosy in future.

Hard lesson to learn….

By: Stevie

Stevie — Mon, 26 Jul 2010 15:00:31 +0000

Hello Bill & Martin,

I’m afraid it’s the free market, or the ugly face of capitalism – take a look at my previous entry. I kept my FP shares out of sentient and then last year when RSL bought FP I kept them just to see what a hash up RSL would make of the takeover, never believing in RSL. Holding on to a few shares forces them to keep in touch, I’d written the value off long ago; too lazy to sell just after demutualisation (usually the best time, also for cashing in Gov’ sell-offs).

I researched: RSL’s background, the prospectus for the takeover of a UK section of AXA (not all AXA), Mr Clive Cowdery’s background and education, his achievements, and even talked to FP staff, Judging how little my criticisms have been moderated on various blogs there must be others in the financial sector with strong reservations about Resolution. In life one has to know when to cut and run.

By: Martin Nuttall

Martin Nuttall — Mon, 26 Jul 2010 13:05:39 +0000

Bill C

The number of shares you have been allocated in the rights issue will be sold on your behalf if you do not exercise your right to buy. The amount you will receive will be determined by the share price at the time of the rights issue in a couple of weeks, less the option price. So currently they are worth around 226p, less 150p option price = 76p. Do the maths and you are well out of pocket, (to the tune of a couple of grand) as am I and many other smaller shareholdings.

What I want to know is how this can happen.

In financial services we have a thing called TCF, treating the customer fairly. This is clearly not how we have been treated.

It would appear that Resolution are just a bunch of spivs and con men.

By: Bill C

Bill C — Mon, 26 Jul 2010 11:44:50 +0000

I have owned 4500 FP/Resolution shares since the company was privatised ,and for which I effectively paid about £8500. The shares have never done particularly well, but I have always lived in hopes. I viewed the takeover by Resolution with some trepidation but the shares were so low then, I stuck with them thinking they could not go much lower. The very recent AXA deal has left me shell shocked and totally bewildered. I probably know as much about share dealing as Mr Average but am not clueless.
Following agreement at the Resolution General Meeting on 20/7/10, On 21/7/10, I accessed my shareholding portfolio through Computershare, Resolutions shareholder services provider. My shareholding in Resolution was shown as 4273 (the number of shares I had been allocated when Resolution took over FP) and the value of each share was shown at £2.45.
I immediately accessed the Computershare, on line share dealing service, in order to sell my shares but was unable to make a deal until after the market had closed. However I did make a deal to sell my entire holding. I did not tell Computershare how many shares I held, it was telling me. I have a deal confirmation notice with a Deal Reference Number which tells me (a) the company I am dealing in - Resolution ORD NPV; (b) The number of shares being sold - 4273 (c) the number of shareholding before - 4273 (d) the number of shareholding after - Nil.
On 22/7/10 I rang the shareholder hotline at Computershare to establish the rate at which my deal was done and was advised at 245.3 and that I would receive £10436.97 after commission. On 23/7/10 I recieved a telephone call to say that the deal I made was invalid he said that after the consolidation I only had 142 shares each valued at 245.3 giving an overall value of £348.
If what he says about the consolidation is true then the value of my portfolio would have reduced overnight from about £2970 to £348 and I am to say the least staggered and do not understand what is going on. I may have missed something along the way. I did read the prospectus for the General Meeting. But gained no inkling of what the company was intending . Given that, they have never sought to be user friendly as far individual shareholders are concerned.
I have 2 questions which I hope someone may be able to help me with.
Was the deal I made valid?
What has happened to my shares?. If I am now the owner of just 142 shares valued at £348 then this must be a blatant case of highway robbery. The share price would have to increase from 245p to 2091.5p just to restore the value 3 days ago.As I understand it there is no current value to the rights issue as I am not able to sell them now. I can elect to sell them but the value I will recieve will be determined by the price they can be sold for which Resolution confirm could leave me recieving nothing for the reserved rights.

A very angry and bewildered shaereholder