Irish Nationwide may be next for privatisation

The successful outcome of the recent First National Building Society a.g.m., at which members voted overwhelmingly to allow the society to become a publicly quoted company on the Irish and British stock exchanges, has members of the Irish Nationwide Building Society wondering if their turn is next. The Nationwide is a likely candidate for privatisation, though it wants the flotation rules regarding the size of individual shareholdings relaxed probably to facilitate a buy-out but no date has been mentioned, and speculation has been dampened slightly by a requirement that share accounts hold a minimum £10,000 to qualify for voting membership of the society.

The usual two-year rule for qualifying membership will also apply, but the relevant time period will only be known if and when the company makes a formal announcement that it will seek a stock exchange listing.

Meanwhile, letters keep coming in from readers who have received no satisfaction over their claims for free First National shares. A reader in Belfast, Mrs K, has had an ordinary deposit account with FNBS for a number of years certainly well within the required two-year qualification period. Unfortunately, her account is not one of the 25 designated share accounts which range from a child's Beehive Share account to tracker bonds, special savings accounts (SSAs) and a number of investment funds and she will not receive the allocation of 450 free shares. But, says First National, savers like Mrs K will be entitled to a special cash distribution of amounts equal to 20 per cent of the aggregate balance on their investment account to a maximum of £200.