Birmingham Midshires Building Society Considers Halifax Offer, But Flotation Remains an Option

The Birmingham Midshires Building Society, in response to the Halifax Building Society's £780 million takeover offer, has indicated that it may reject the proposal as inadequate. Chief Executive Mike Jackson stated at the society's annual meeting that flotation on the London Stock Exchange remains an option if a suitable partner cannot be found. The society is currently bound by an exclusivity agreement with the Royal Bank of Scotland, which accepted a £630 million bid last August.

Key Takeaways:

• The Birmingham Midshires Building Society is considering the Halifax Building Society's £780 million takeover offer, but may reject it as inadequate.
• Flotation on the London Stock Exchange remains an option if a suitable partner cannot be found.
• The society is bound by an exclusivity agreement with the Royal Bank of Scotland, which accepted a £630 million bid last August.
• The agreement restricts the Midshires from entering into talks with the Halifax until the end of the year.
• The Halifax has expressed impatience with the Midshires' lack of progress in negotiations.
• The Midshires' strategy is considered "all over the place" by Halifax Director of Distribution Dick Spelman.

Statistics:

• The Halifax Building Society's offer is worth £780 million.
• The Royal Bank of Scotland's original bid was worth £630 million.
• The exclusivity agreement with the Royal Bank of Scotland will run until the end of the year.
• The Midshires' annual meeting was held in Birmingham.

Sources:

• The Birmingham Mail, August [no date provided] (reference to Royal Bank of Scotland's bid)
• The Birmingham Mail, [no date provided] (reference to Halifax's offer and impatience)
• Statement by Mike Jackson, Chief Executive of Birmingham Midshires Building Society
• Statement by Dick Spelman, Directory of Distribution of Halifax Building Society