Perhaps it doesn’t tug at the heartstrings quite like It’s a Wonderful Life – the classic Christmas film starring James Stewart as the manager of a mutual savings firm.
Despite the victory of ordinary customers over powerful private equity forces, it is still a reason to enjoy the holiday season a bit early.
The chances are that the best and oldest mutual insurers in the country will continue to be loved, rather than being sold off to private equity for the benefit of the self-serving bosses.
While the economic crisis has meant that many people and their families struggled to survive, this period of time was an opportunity for private equity.
Wm Morrison supermarket has been one of the many companies that have fallen to the hands buyout barons.
The predators have swooped on some of the UK’s most important businesses virtually unhindered – until now.
Perhaps it doesn’t tug at the heartstrings quite like It’s a Wonderful Life – the classic Christmas film starring James Stewart as the manager of a mutual savings firm
Big City shareholders almost never put up much resistance. They will take quick cash from any sale and not consider the impact on customers, employees or the overall economy.
And bosses of target companies are often all too eager to sell out to private equity as it means they will be in line for large personal gains – as was the case at LV.
Therefore, it’s encouraging to see small-scale savers willing to fight for the mutual good.
LV’s “leaders” treated its policyholders with total contempt during the whole sale.
Their hopes of the deal going through were based on passive acceptance or apathy on the part of what they believed to be sheep-like savers.
They could not have bargained on the intelligence of their members, who even though the turnout was small, showed enough strength to stop their plans.
The LV policyholders who voted against Bain may not be financial experts – but they can tell when they are being patronised and sold a pup.
Chairman Alan Cook and Chief Executive Mark Hartigan were atrocious from the beginning of the failed sale until the end.
The important information was kept secret and was only released when pressure was applied, or was tucked away in lengthy documents that made it difficult to find.
Respect and transparency, which are two of the most important mutual principles, were badly lacking.
This mentality was maintained until the very last breath.
Yesterday’s online meeting was even closed to media. Even though there was clear public interest, and it’s a practice of many companies to allow reporters at such events.
Hartigan and Cook didn’t convincingly justify why they turned down a offer from Royal London, a fellow mutual. This was something that many members would prefer.
Two mutuals are in talks about making a new deal.
Although this seems like a good development, mutuality does not guarantee anyone a pass. This newspaper will keep an eye on Royal London to ensure that the new offer is in line with the best interests of LV-savers.
This victory is for political campaigners, politicians, and more importantly, for the LV-savers who voted no to the deal.
Messrs. Hartigan & Messrs. Cook, you should listen to It’s a Wonderful Life again over Christmas.
They might be able to absorb some of the mutual energy if they are able to watch it enough.
Victory for the Mail as £530million LV deal is blocked: Chairman quits after mutual’s members reject takeover by US private equity sharks
Lucy White and Archie Mitchell, Daily Mail
Members of historic insurer LV yesterday voted down the firm’s controversial £530million takeover by a US private equity shark.
Bain Capital’s attempt to buy the 178 year-old company from the remaining 1.2million policyholders was rejected by them in victory for The Daily Mail.
Just minutes after the results were announced, LV’s chairman Alan Cook – who had been central in trying to push the deal through – said he would step down.
Critics of the deal were also calling for the removal of chief executive Mark Hartigan – a former army colonel who kicked off the sale process just weeks after joining the insurer at the start of last year.
Mail won the victory by obtaining the vote of LV members in favor of keeping the company, once called Liverpool Victoria, from Bain.
Members of historic insurer LV yesterday voted down the firm’s controversial £530million takeover by a US private equity shark. Bain Capital’s attempt to take over the 178-year old firm was rejected by the 1.2 million policyholders. This victory is a win for Daily Mail
This paper is a campaign to end the tide of pandemic plucking’. Private equity firms have searched the UK looking for low-valued businesses they could buy and extract profits.
A buyout of LV by a private equity firm would have been particularly distasteful, since the life insurer is a mutual – meaning it is owned by its members and can be run entirely for their benefit.
This goes back to LV’s inception in Liverpool in 1843, when it started selling ‘penny policy’ to aid the poor in burying loved ones with dignity.
Private equity firms purchase businesses for their cash. They are notorious for cutting jobs, slashing costs and hiking prices – and LV members were worried that their policies and services would suffer.
Since the pandemic, the firms have taken control of all businesses including Morrisons and the AA as well as G4S. Major City shareholders are now allowing the companies to take their money.
Campaigners, experts, and MPs praised Bain’s rebuttal. Kevin Hollinrake, Tory MP and expert said that this was a major victory for the Parliamentary Group on Mutuals (and the Daily Mail) who have exposed scandal after scandal.
Just minutes after the results were announced, LV’s chairman Alan Cook – who had been central in trying to push the deal through – said he would step down
This message is sent to private equity plunderers, to stay away from beloved British companies.
The main reason it worked was that members got a say and not the big city institutions trying to make a killing.
Labour MP, Dame Margaret Hodge said: “If there hadn’t been a strong campaign in the Daily Mail playing an instrumental role I believe people would have had their wool pulled over their eyes. That is frightening.”
Lord Heseltine, Tory great and Tory kingmaker said that members’ long-term dedication to the company had repelled short-term opportunism in the business’s dissolution.
LV currently considers whether it will be open to discussions with Royal London (a mutually owned company that bid against Bain) in order to decide whether or not they should. It presented a proposal that would have LV’s members becoming part-owners of the entire enlarged business.
Critics of the deal were also calling for the removal of chief executive Mark Hartigan – a former army colonel who kicked off the sale process just weeks after joining the insurer at the start of last year
Out of the 15% of LV members that voted, 69 percent endorsed the agreement. However, this was less than the 75% required to dismantle LV’s mutual organization.
This is Mr. Cook’s latest setback, who has a long history of scandals.
Permanent TSB, an Irish lender, was his chairman. He had to apologize to the 1,400 mortgage victims he overcharged.
Between 2006 and 2010, 161 wrongly tried postmasters were brought to justice by him as managing director at the Post Office.
Until a way forward is established’, Mr. Cook will still be Chairman of LV.
RUT SUNDERLAND. Small-savers could see they were being sold as pups and brought enough to derail LVs plans
Ruth Sunderland, Daily Mail
Perhaps it doesn’t tug at the heartstrings quite like It’s a Wonderful Life – the classic Christmas film starring James Stewart as the manager of a mutual savings firm.
Despite the victory of ordinary customers over powerful private equity forces, it is still a reason to enjoy the holiday season a bit early.
Now, it seems likely that one the country’s most beloved mutual insurances will keep that status instead of being sold to private equity bullies for the pleasure of their self-serving bosses.
While many families and businesses have struggled financially through the pandemic it was a great time for private equity.
Wm Morrison, a supermarket chain, has fallen prey to buyout barons.
The predators have swooped on some of the UK’s most important businesses virtually unhindered – until now.
Perhaps it doesn’t tug at the heartstrings quite like It’s a Wonderful Life – the classic Christmas film starring James Stewart as the manager of a mutual savings firm
Big City shareholders almost never put up much resistance. They will take quick cash from any sale and not consider the impact on customers, employees or the overall economy.
And bosses of target companies are often all too eager to sell out to private equity as it means they will be in line for large personal gains – as was the case at LV.
It is encouraging to see small savers standing up for common values.
LV’s “leaders” treated its policyholders with total contempt during the whole sale.
Their hopes of the deal going through were based on passive acceptance or apathy on the part of what they believed to be sheeplike savingrs.
If that was true, then they didn’t bargain with the smartness of their members who came out in enough numbers to defeat their plans, even though the turnout was not high.
The LV policyholders who voted against Bain may not be financial experts – but they can tell when they are being patronised and sold a pup.
Chairman Alan Cook and Chief Executive Mark Hartigan were atrocious from the beginning of the failed sale until the end.
The important information was kept secret and was only released when pressure was applied, or was tucked away in lengthy documents that made it difficult to find.
Respect and transparency, which are two of the most important mutual principles, were badly lacking.
This mentality was maintained until the very last breath.
Yesterday’s online meeting was even closed to media. Even though there was clear public interest, and it’s a practice of many companies to allow reporters at such events.
Hartigan, Cook and Cook failed to explain convincingly why they turned down a offer from Royal London, a fellow mutual. This was something that many members would prefer.
Two mutuals are in talks about making a new deal.
Although this seems like a good development, mutuality does not guarantee anyone a pass. This newspaper will keep an eye on Royal London to ensure that the new offer is in line with the best interests of LV-savers.
This victory is for political campaigners, politicians, and more importantly, for the LV-savers who voted no to the deal.
Messrs. Hartigan & Messrs. Cook, you should listen to It’s a Wonderful Life again over Christmas.
They might be able to absorb some of the mutual energy if they are able to watch it enough.