What does a GLS sale mean for share holders?

[Keso]

Just out of interest, what would GLS being split off into a new company mean for shareholders? A big one off dividend? Shares in the new company? Something else?

[Woody Guthrie]

It would mean the company was suddenly cash rich.
Like any short sighted business that cash would be returned to shareholders rather than invested in the future of the core business.

The shares would then tank but the major shareholders, Simon and Co will all have filled their pockets and f****d off.

[Slim2none]

As I understand it, shareholders hold stock in IDS, which means GLS and whatever else goes along with it. The split is likely to be RM letters are what's left and probably sold back to or handed over to the government. Big Daniel doesn't seem interested in letters side of things. If that is loss making, it won't be included in the IDS portfolio, so shareholders won't care too much. They just want the dividend payment at the end of the day. Of course that's just my 2p. Ruthless business is all about profit and dividend.

[clashcityrocker]

Big Daniel doesn't seem interested in letters side of things.

He also owns 25% of PostNL and I believe they still deliver letters.

Incidentally the Dutch press often speculate that he is going to launch a takeover ........

[Slim2none]

Yeah. Re: PostNL. Sure I read somewhere that it's not totally private (?) If the Dutch government still have a stake, even a smallish one, maybe that is the difference. I don't know the full ins and outs of it all. But Big D has let it be known he wants GLS which intimates he's not interested in letters. Like everyone else, right or wrong, it's still just speculation. Which is only natural when we're not told anything.

Again just my 2p.

[clashcityrocker]

But Big D has let it be known he wants GLS

Where?

[Slim2none]

Admittedly, not the most reliable source, but if Google his name and RM together, there are numerous links to reports of his interest. Quite a few from newspapers but also some others. Have a look and make up your own mind.

[mjd24]

So is anyone on here buying up IDS shares at the moment?

[SpacePhoenix]

So is anyone on here buying up IDS shares at the moment?

They're on the rise atm:

https://www.google.com/finance/quote/IDS:LON

[Woody Guthrie]

So is anyone on here buying up IDS shares at the moment?

Apart from the obvious moral aspect.

It's a risky game for non professionals.
You're gambling on..
1. The takeover going through.
2. The sale of GLS going ahead
3. The proceeds of the sale being returned to shareholders and the extra dividend going through.
4. Offloading your shares before they tank and wipe out any dividend returns or worse...

To be honest the kind of money most of us are talking about is easier and safer to make in other ways.

It's possible VESA might not sell GLS, it's a solid investment and they're an investment vehicle.

They may simply keep it and sell/dump the unprofitable part of the business.

[mjd24]

So is anyone on here buying up IDS shares at the moment?

Apart from the obvious moral aspect.

It's a risky game for non professionals.
You're gambling on..
1. The takeover going through.
2. The sale of GLS going ahead
3. The proceeds of the sale being returned to shareholders and the extra dividend going through.
4. Offloading your shares before they tank and wipe out any dividend returns or worse...

To be honest the kind of money most of us are talking about is easier and safer to make in other ways.

It's possible VESA might not sell GLS, it's a solid investment and they're an investment vehicle.

They may simply keep it and sell/dump the unprofitable part of the business.

Yes very true, all good points. Ive still got 196 shares that ive kept almost for the “fun” of it and the odd little dividend. Mostly invested in multi assset trackers etc.

[Keso]

Thanks for the replies everyone. I still buy shares monthly through my wadges monthly, I just hadn't really given it might thought what might happen with a split.

[mjd24]

£2.30 today

[wacko74]

Big Daniel doesn't seem interested in letters side of things.

He also owns 25% of PostNL and I believe they still deliver letters.

Do PostNL also have to abide by a ridiculously outdated and inefficient 6 day letters USO?

Or are they more sensible and modern (and profitable)

[Slim2none]

And oddly enough....PostNL have also announced losses of about €20M