CGNU only think big

Once again this week, the little investor has been left out in the cold. The shares in the newly merged CGNU - Commercial General and Norwich Union - started trading, only for the small shareholders, typically those who might have received some shares as a windfall when Norwich Union demutualised, to find they were unable to trade.

Understandably, the company argues that the shareholders have to receive their new share certificates setting down how many shares they hold in the merged company after the stock deal before they can trade. Some others, whose shares are held for them, will receive a statement of entitlement. Quite so, but how come there is such a delay in getting these documents out? The outcome is that, yet again, the institutions are able to jump in as soon as trade restarts and secure what are often the best prices, while the small investor is left watching and waiting in frustration.

They are able to trade only when they eventually receive their notification by which time the price has settled down.

With smaller retail investors playing a greater role in the market in recent years, it really is time that listed companies started taking steps to better accommodate their needs.

Dominic Coyle can be contacted at dcoyle@irish-times.ie