The lack of a cash underpin puts minority holders at risk for two months.

Roy McAlpine, former financial director of Liberty Life, resents having his Mutual & Federal (JSE:MAF) shares "confiscated" in Old Mutual's (JSE:OML) current bid.

He is not about to start a resistance movement.

"To arrange resistance costs time, money and effort. Brimstone and a number of other minority holders have already indicated support. Old Mutual can't vote its 73% holding but they need only 75% of the remaining 27%. Shareholder apathy will see them succeed."

McAlpine says the bid is "opportunistic". He points out that both the insurance and the investment sides of the business are at a low point. Meantime the Old Mutual share price has soared from R6 to R13.50 in just a few months.

"On a shares-for-shares deal, a 19% premium at this stage of the cycle is not fair. People should remember that over 30 years M&F has been a very good investment."

He said he was cynical that no stock broker had questioned the deal.

"I wonder how much brokerage they would have had from Mutual in the future if they were negative."

McAlpine also laments the lack of a cash underpin. He says it will be two months before today's M&F holder receives his Mutual shares.

"If the market tanks in the interim, they will be out of pocket."

McAlpine questions Old Mutual's resorting to a scheme of arrangement, rather than a proper minority takeout through Section 411 of the Companies Act. The former requires 75% minority approval and the latter 90%. McAlpine says the scheme of arrangement was originally intended to facilitate takeovers, not to take out minorities.

"They are forcing me out after 30 years."

Write to David Carte: davidcarte@moneyweb.co.za

Intraday

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You can recognize Old Mutal by what it does and how it does it. That leopard will never change its spots. by Free the Rest on October 22 2009, 17:30 Find this comment inappropriate? Report it

I agree Roy......... I will NEVER invest in and Old Mutual Company again..... They treat minorities like DIRT! I am selling my Old Mutual Shares and buying PSG and Remgro, Jannie Mouton and the Ruperts know how to look after their minorities. If Brimstone has . .more agreed to sell then that is one company I will also steer well clear of! Alex maybe you should ask them why they sell out there shareholders money so cheap? . .less by Durban investor on October 22 2009, 17:44 Find this comment inappropriate? Report it

Well said Roy I am not prepared to take Old Mutual's high risk junk paper. by Minority Abuse on October 22 2009, 18:50 Find this comment inappropriate? Report it

Since 2004 Old Mutual have ... tried to buy Mutual & Federal on the cheap by Very Opportunistic on October 22 2009, 18:52 Find this comment inappropriate? Report it

More reputational damage for Old Mutual. Now Old Mutual's future is jeopardised! by It always come back to bite you on October 22 2009, 18:57 Find this comment inappropriate? Report it

Within 12 months Old Mutual shares will be back at R20.00 M&F shareholders should accept this offer. Within 12 months Old Mutual shares will be back at R20.00. Mark my words. by Carl on October 23 2009, 07:26 Find this comment inappropriate? Report it

Within 12 months Old Mutual shares will be back at R20.00 How do you know that Carl? by @Carl on October 23 2009, 09:02 Find this comment inappropriate? Report it

Goodbye Old Mutual After thirty years of buying old mutual products ,this is the final straw.Total lack of belief that they serve anyone else's interests except their management.Internal bureaucracy,like the parastatals is thei r main focus. by ex shareholder on October 23 2009, 10:03 Find this comment inappropriate? Report it

To Carl Old Mutual has a better chance of dropping below R10 than going to R20 within 12 months. Short OML. Carl will buy! by Reject the offer on October 23 2009, 11:14 Find this comment inappropriate? Report it

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