Time is ticking for Alliance & Leicester shareholders

Gavin Oldham, chief executive of The Share Centre explains the options Alliance & Leicester shareholders have ahead of the Santander take over: "The 500,000 plus Alliance & Leicester shareholders have two options if, as expected, the bid from Santander is approved a week today; sell or face complicated tax arrangements. While there is little investors can do to stop the takeover, they do have until Friday 10 October to sell their shares. There's no cash alternative for the takeover.

If shareholders choose not to sell their shares the taxation arrangements include: an 18% charge on Santander dividends, which can only count towards your UK tax bill if a special Spanish tax form is submitted and a full tax return is made to the HMRC, and obligatory submission of the special Spanish tax form within a month of selling Santander shares, failing which you could be fined €100 or more".

Oldham suggests, "Investors who opt to sell, but who would like to reinvest in an alternative UK bank could look at HSBC or Barclays, both of whom The Share Centre currently hold as medium risk shares."

Customers who received 250 shares when Alliance & Leicester were demutualised in April 1997 had an initial holding valued at £1,332. Since then, a total of £1,182 of dividends have been (or will be) paid, but the shares are now worth just £741 (at the closing price on 5 September) as the bank has been hard hit by the credit crunch.

How can The Share Centre help these investors?

1. Save money if selling share certificates - The Share Centre charges commission of 1%, subject to a minimum of £7.50. Investors selling their shares through Barclays (Alliance & Leicester's preferred provider) will be charged commission of 1.5%, subject to a minimum of £25.

2. Customers of The Share Centre, who have registered for their advice service, are also entitled to advice on re-investing the proceeds for no additional charge.

3. Holders of Alliance & Leicester share certificates can print a share sale form from The Share Centre's website, www.share.com, and send the completed form and certificate to The Share Centre's office. Those without internet access should call 0800 800 008 for a form to be sent for completion.

4. For those not re-investing their proceeds, payment will be made three business days after dealing.

5. In 2004, when the Abbey takeover went through, the buy to sell ratio at The Share Centre was 1:99. Certificate sales accounted for 80% of all sales.

The average value of the certificates sales was £2,001.