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general financial Coventry Building Society has announced an agreed takeover of Stroud & Swindon, the smaller west country mutual, in the latest consolidation move in the sector. The proposed deal [...]

General Financial Skipton Building Society is to merge with a smaller rival, the Chesham, as the UK's fourth-biggest mutual looks to bolster its capital position following a challenging year. Skipton [...]

What's the deal? A savings bond from the recently merged Co-operative Bank and Britannia Building Society that pays a fixed rate of 5 per cent for three years. The deal [...]

Merged entity to rival Nationwide Group targets up to [pounds sterling]40m of savings Yorkshire Building Society yesterday sealed its deal to buy troubled rival Chelsea, closing the gap on nationwide, [...]

GENERAL FINANCIAL A Scottish-led consortium revealed it was interested in a potential merger with the Dunfermline Building Society but claimed it was only given a chance to meet the mutual [...]

Birmingham Midshires buildings society is to pay windfall bonuses to its members because it is being acquired by Halifax. Investors seeking other mutuals which could pay windfalls have to look hard. Bigger mutuals look less likely to shed their status. It is difficult to tell which smaller societies could make the move. They have started to remove barriers against those seeking windfalls, but investors may have to accept low interest rates if they save with a mutual mainly in order to obtain a possible bonus.

Royal Bank of Scotland made a bid for Birmingham Midshires building society in 1997, and Halifax has also made an offer for the company in 1998. Royal Bank of Scotland is likely to withdraw if it does not wish to match the Halifax offer. Mutuals seeking to sell their business should avoid taking long-term decisions at the start of the process since it is likely to take some time and new proposals may emerge. The members of Birmingham Midshires should benefit despite the wait.

Savers with Bristol and West (B and W) building society, which plans to be acquired by Bank of Ireland, could receive a bonus averaging 1,100 pounds sterling each. Mortgage borrowers will also receive a bonus. Some members could oppose the deal, however, and argue that the price which Bank of Ireland has offered is too low. They are in favor of a flotation as has happened with the Halifax. The chief executive of B and W argues that a floation offers members more value, and Bank of Ireland has promised to keep B and W a separate company and retain staff.