Anyone know about selling shares in a hostile take over?

[Lawnmower Man]

Hi,
   I could use some advice about selling shares.   I been approached by what looks like a legit American company who want to buy some shares.  They are offering 3.5 times the share price on the FTSE.  So it all seems too good to be true. (Scam Alert triggered)

They say they are buying the shares to enable a hostile takeover. 

I don't understand why they don't just buy on the open market.

Cheers,
T.

[dukla]

Unless you have a significant holding (5 or 10%) I vote scam! They can just buy on the open market a damn sight cheaper (up to a limit when they have to declare their intention).

How did they get hold of you? Only legit path is if you hold the shares directly and they have got hold of the shareholders register.

 Would be pretty sure they need a fixers fee upfront (probably to Nigerian bank account,the same guys who are releasing my unknown uncles millions for me!)

PS the interesting point would be their licence to broker those particular shares they have to be LSE registered (or name their broker who is)

[Lawnmower Man]

Cheers Dukla,

 I may ask a few more questions.   But as they always say on the webinet if it sounds too good to be true is probably is.

[Lorry]

The US vulture funds do some strange things, but paying too much for shares isn't one of them.

PLC share registers used to be available

My thoughts are, could the company be seriously undervalued or own a patent they don't know is valuable, or are most of the shares held by just a few people, so buying on the open market would give the game away, but I keep hearing this with a Nigerian accent

[LuxExpat]

Hi Tom,

Paul (Landman) alerted me to this thread a day or so ago, but I was so busy I couldn't comment then.

As you commented, if it's too good to be true, it usually is! My concern was more how they got your details? I'd be surprised if Registrars are selling shareholder data.

Hedge funds DON'T pay 3x the share's value, ever. They buy for peanuts, sue companies - governments, even, in the case of Argentina - and make an absolute killing.
That's why hedge fund managers are billionaires. Balls of steel and poker faced. You have to have liquid assets >$100m or be registered as a QFI to even INVEST in a hedge fund!

UK takeover rules require disclosures to be made. As soon as any registered holder exceeds a % holding limit they're required, under Section 212 of UK securities law, to disclose WHY, and if they intend to make a bid for the company.

It's far more common for shares to be bought in small lots, on the open market and at market price, so as to not raise suspicion on intended actions until it's needed for legal & regulatory reasons.

Keep digging with them, Tom, to see what they may disclose to you..... I'm genuinely interested.

Scam a scammer, me? No.... I'd never do such a thing. 

Russell

[Lawnmower Man]

Well I'll give them a high score for persistence.

Despite telling him I'm not going ahead he is still trying to get me involved.  He becoming a pain in the back side.  I have better things to do than listen to his BS.

t.

[aricus654]

Tom,

How did it turn out?

Did you get to the bottom of it?

Aricus

[Lawnmower Man]

I told him it was too good to be true. It sounds too much like a scam I told him.  after that he didn't phone again.

t

[aricus654]

Ha Ha!

[Andy Zarse]

I told him it was too good to be true. It sounds too much like a scam I told him.  after that he didn't phone again.

t

Not for nothing is this known as "The Boiler Room". They will try to ramp up the pressure on you to sell. Eventually you will TX the shares to the "buyer" but the intermediary will sell the shares and piss off with your money. A very simple tactic.