what should i do with the scottish power shares I hold now it is being takenover?

Answer 1

Who is it being taken over by. Are they giving new shares in the company that is taking over scottish power or are they just paying cash for the company.
If they are paying cash for the company you will have to contact your bank or stock broker to get the money for your shares. If they are issuing shares as part of the takeover you will have to also get your bank or broker to get the shares transferred.
I however cant find any news on a bid for scottish power. But normally when this sort of thing happens I sell for the bid and re-invest in other companies. But you will need to do research on the takeover company and the agreements that have been made.

Looking at the share price chart though I would personally sell half of my holding anyway as the graph shows a major growth in the SP over the past years and will probably go sideways for a short to medium period 6-months to a year.
But with a takeover this analysis is pointless.
Its the details of the takeover that matter what price will be paid or will the takeover company pay by issuing shares.
Hold on untill all yhe information is available as a base has been set looking at the charts of 57.00. And it may return more than this maybe even as much as 62.00.

Answer 2

I'm in the same boat. It seems the current share price for Scottish Power is around £7.64 and Iberdrola are offering £4 a share plus 0.16 of a new Iberdrola share ( whole share is worth about £23), plus a one-off special dividend of 12p per share. So, if my calculator doesn't blow up with the effort, I think that they're offering £4 plus £3.68 plus 12p = £7.80 or so per share.
You don't have to accept this, you can keep your Scottish power shares as the dividends are quite good. Iberdrola may offer a dividend reinvestment (like Abbey/Grupo Santander) which is good; however, you should consider that the new Iberdrola shares will be quoted in Euros and if you decide to sell them in the future then this will be subject to foreign exchange charges and fluctuations.
My own decision, based on what I've read so far (and, no, I haven;t read the 430 page book) I'm deciding to hang on to the Scottish Power shares. You don't gain much from selling to Iberdrola and, anyway, I think that if they're unsuccessful they might up their offer in the future.

Answer 3

watch the price - if it's going up, hold on for the ride