Vote this terrible takeover down, urge critics

LV MEMBERS have been urged to vote against the 178-year-old mutual’s takeover by American private equity barons.

The planned £530m sale to Bain Capital will only go ahead if it is backed by members, who can vote online or by post between now and December 8.

Or they can vote online during a special general meeting on December 10.

Tory MP Kevin Hollinrake said: ‘My message to members is: “Don’t vote for this deal.” In fact, actively vote against it.

‘You’ll be worse off in the long run, as will other consumers, because this deal is bad for competition and will result in the loss of another mutual, which are businesses set up to protect members. The payout demonstrates yet again that this deal is good for the executives, but not for members.’

Liberal Democrat peer Lord Wrigglesworth said the ‘paltry’ £100 offer was ‘an insult’ to members. ‘I would advise members to vote against the deal,’ he said. ‘The regulators made it clear they will not intervene, the Government will not intervene, so it’s in the hands of members who in my view should vote against it.’

LV’s constitution requires 75pc of voting members to back the deal, on a turnout of at least 50pc. But LV members will be offered two votes.

The first requires 75pc of voting members to approve the takeover. The second allows LV to ditch the 50pc turnout threshold, meaning it could go through with a fraction of members’ support.

If the vote on scrapping the rule requiring a 50pc turnout is lost, bosses will push ahead with the deal under a different guise and members will be paid just £60. Peter Hunt, of mutual advocacy organisation Mutuo, said: ‘LV bosses have such a low opinion of their members they think a £100 bribe is sufficient for them to be allowed to continue with their asset stripping.

‘The only way to stop this dreadful deal is to vote against it. LV bosses will be hoping for a low turnout so the deal passes because of a few people taking the £100 who couldn’t care less about anything else. The more members vote, the worse a chance the deal has of passing.’