Warning - Litani is trying to buy Aviva Shares at below the price you can sell on the market

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Sprocket77

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My father received an offer to buy his Aviva shares from Litani LLC a US compnay, he still has some from his Norwich Union shares back in the day.

He thought it was great that he had got an offer and wanted to cash out. A cursory look at the current share price showed that their offer was 17% below the current share price.

Does this happen often, it feels likes an attempt to get elderly shareholders to sell up without realising that the price isn't what it should be? Dad's not financially illiterate and at least he asked my opinion on it, but would hate to think that elderly shareholders were being targeted in particular here.

I appreciate for some shareholders who don't have access to a stock broker, or who might have no idea where their share cert is that, this may be an easier cashout, even taking the lower price.
 
I had advised him not to sell, if I wants to get rid of the shares I'll arrange that for him.

Disgraceful that this behaviour is allowed, particularly when it's going to be an older cohort holding these shares. Wouldn't be surprised if they tried it with Vodafone or Standard Life.
 
Sprocket77 said:
A cursory look at the current share price showed that their offer was 17% below the current share price.
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In the communication he received was there any mention of selling fees or any other admin fees.

In other words if the current market value of his shares were say £100 would he definitely get £83 into his pocket if he went with Litani??

For smaller shareholdings, a stock brokers selling fee can be prohibitive.
 
1dave123 said:
In the communication he received was there any mention of selling fees or any other admin fees.

In other words if the current market value of his shares were say £100 would he definitely get £83 into his pocket if he went with Litani??

For smaller shareholdings, a stock brokers selling fee can be prohibitive.
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I don't remember a mention of selling fees, so presumably he would have received the discounted price in full, so you are correct fees would have eaten into this.

The discount on Dad's small amount of shares was about £200, so still a good bit more than potential fees. It's actually about a 24% discount on today's price, gone up since last week.

Some people will still go for this for ease of disposing of the shares.

Litani were looking to offer on the first 1m shares, so would have an unrealised profit of £1.67m if they managed to purchase that many before their expenses. Not bad for a fishing expedition.

ClubMan said:
Or use ComputerShare, Aviva's registrar's, share dealing service?

https://www.aviva.com/investors/shareholder-services-overview/manage-your-shares/#share-dealing
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Will look into this if he does want to sell them, thanks
 
Sprocket77 said:
Will look into this if he does want to sell them, thanks
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Aviva seem to contradict themselves on their website...


Computershare, our Registrar, can assist with administrative queries about your holding, including information that may be needed if you choose to transfer shares to a broker, but are unable to sell your shares.
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If you hold your shares in the Aviva Share Account, you’ll need to use Computershare’s internet or postal share dealing services. You can find further information, including commission rates and charges as well as any restrictions to using the service and/or obtain a postal share dealing form:

Computershare Dealing Service

Or contact Computershare.
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This is confusing. Maybe ComputerShare share dealing is only available to UK shareholders or something. I think that's the way it is with Vodafone and their registrar Equiniti.
 
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Aviva shares passed the €7 price yesterday for the first time since 2007. They are due to have a trading update next week and the shares go ex-dividend on the 28th August. If your Dad wants to sell his shares just be aware of the above.
 
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