Bid for Birmingham Midshires would give savers pounds 1250 cash
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Your support makes all the difference.LONG-STANDING savers with Birmingham Midshires will get an average of pounds 1,250 in cash if they approve a takeover by the Halifax, the Midlands- based building society said yesterday.
Midshires unveiled its plan yesterday to distribute pounds 750m in cash and preference shares if members vote to approve the Halifax bid at a special general meeting on 11 December. Savers with large balances could stand to gain cash of up to pounds 5,000, depending on the size of their balance at the end of this year.
Payments will begin to be made on 19 April 1999.
Ian Kerr, Midshires' new chief executive, said: "The board remains unanimous in its belief that the Halifax proposal is in the interest of our members, other customers and employees.
"This proposal will only go ahead if enough members vote in favour of the deal and I urge everyone to support the transfer."
In contrast to the flotation of the Halifax last year, the society is offering windfalls to children, the disabled and overseas savers. Employees of Midshires will also be included.
"Our principle has been to recognise the contribution of all our investing members and borrowers. We have set out to ensure our distribution scheme rewards the loyalty of our longer-standing investing members," Mr Kerr said.
But the plan ran into immediate controversy as it emerged that borrowers will receive no more than carpetbaggers who have been with the society for less than a year.
Under the plan, 150,000 borrowing members will each receive pounds 400 of preference shares. Savers who have been with the society since 31 December 1997 will receive the same.
Only 400,000 savers who have kept a savings account with the society since 31 December 1995 will get higher payouts. They will receive pounds 400 in cash, plus a further payment of between pounds 400 and pounds 4,600, depending on the balance of their accounts.
Critics said that savers were being rewarded at the expense of borrowers.
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