JEFF PRESTRIDGE It’s decision time for the 1.16m members of mutual Liverpool Victoria – stick or twist? But they all MUST vote

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It is decision time for the 1.16 million members of the mutual Liverpool Victoria (LV). stick or twist? Twist as votes to monetize a 178-year-old business with protection, investment and profits – and ownership of US private equity giant Bain Capital?

Or stick, decline the £530million offer and hope (and pray) that a white knight (like Royal London) will come up with a better offer?


Sure enough, the mood music from readers of The Mail on Sunday suggests that LV’s board will struggle to get the 75 percent approval (from voting members) needed to move the ban deal forward.

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Stick or Twist?: LV Members Should Vote on Bain Capital’s Acquisition Proposal

So far, not a single reader has expressed support for demonetisation.

Conversely, many say they have already cast their vote against the deal by post or online. Voting deadline is December 10 – two days before for postal voting.

It’s not hard to see why members are overwhelmed by the ban proposal.

For a start, the £100 monetization bonus – more in the case of customers with LV’s 297,000 profit – hardly seems generous when other businesses (insurers and construction societies) have given up their mutual positions.

For example, when mutual Scottish widows were taken away by Lloyd’s Bank in 2000, its members received an average payment of around £6,000.

The lack of windfalls on offer fuels suspicion that Bain is trying to get LVs cheap – a view that doesn’t help but bury its head in the sand for most of this year by the board of LVs and explicitly refuses to explain why the bane’s proposal is in the best interests of members and employees.

The refusal to release details of the hefty fees paid to a group of city advisers to oversee the deal has also not helped – resulting in a slew of criticism from the media, politicians and financial experts.

Nor will LV’s silence be met by key board members Alan Cook (president and former Post Office owner) and Mark Hartigan (chief executive) if the takeover goes ahead. It’s only in the past few weeks that Hartigan – and for that matter himself – has been fighting Bane (what on earth were his media advisors doing earlier to justify their fees?).

On Friday, Hartigan told me that Bain’s offer was the best of the 12 bids the board had received — and that, along with deciding the best course of action for LV, it was “the moral duty to do what’s best for the members.” ‘ was inspired by. ,

He admitted that in retrospect he should have done more to explain the reasons for demonetisation to the members (and the media). But he insisted that staying mutual was not an option: ‘All roads led to demonetisation,’ he said.

Bain’s offer, he said, would allow LV to invest in its business, shore up its employee pension plans, build a new IT system for the purpose, and keep its operations open in Bournemouth, Exeter and Hitchin.

If members vote down the deal — as it seems now — Hartigan said the board would have to restart the entire sale process in hopes of pulling out another buyer. But he insisted it was unlikely a rival would be willing to offer more than £530 million.

As far as Bain is concerned, he said that its deal represents its ‘best price’, indicating that it is unlikely the private equity company will be able to offer members more money to gain votes. Will be ready

If no replacement buyer was found, Hartigan warned that LV could be close to new business.

If next month’s vote is to stick to rather than turn, Hartigan and Cook’s positions on LV’s board will be untenable. This, of course, is of no concern to the members (the two have hardly covered themselves in glory).

For the record, Hartigan told me he’s had sleepless nights lately worrying whether the Bain deal will go out of line.

While rejecting Ban’s monetization proposal sounds like the right thing to do, it is not without risk.

But all lv What the members should do is vote.

LV. raise your voice

We are encouraging LV members, customers, or others who wish to retain their reciprocal position to write it, rather than having it purchased by private equity.

You can use the words from the letter printed in the City page of the Granthshala newspaper (pictured here).

We’ve included words for you to copy and paste in one letter below.

Send this to Alan Cook, LV= President, Liverpool Victoria, County Gates, Bournemouth, BH1 2NF

Dear Alan Cook,

I, the undersigned, urge you to reconsider your decision to sell LV= to Bain Capital and instead retain its reciprocal position.

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