Shareholders urged to keep state

More than 1,300 Albion shareholders have been urged to buy a continued stake in the Baggies - as a possible way of beating the credit crunch.

Members of Shareholders 4 Albion (S4A) were told at a meeting that Albion shares should be a shrewd investment, as they discussed chairman Jeremy Peace's share consolidation plan.

The group held a discussion on Peace's proposal after their AGM at the Park Inn Hotel near the Hawthorns, with members were encouraged not to relinquish their stake in the club.

S4A chairman Neil Reynolds told the meeting that while he was not qualified to hand out professional financial advice, but he believes Baggies shares could be a fantastic investment. Peace intends to consolidate shares, so 10 current shares will become one new consolidated share.

Shareholders with fewer than 10 must "round up" their shares to multiples of 10, by buying new shares at £80 each.

Mr Reynolds told the meeting that 1,353 of Albion's 1,674 shareholders own fewer than 10 shares. They stand to lose their say in the running of the club unless they act before November 6.

More than 1,100 shareholders hold five shares or fewer.

Mr Reynolds said: "Of the 1,353 shareholders with 10 shares or fewer, 568 have just one share so it would cost them £720 to round up their shares.

"We appreciate that is a lot of money but it is our opinion that, at £80 each, the shares are considerably under-valued.

"So any shares bought now would, in our opinion, be worth more on the open market than people would be paying for them.

"I will be applying to round up my shares and if I had the money and was able to I would be buying a lot more shares."

Mr Reynolds said the consolidation is inevitable, as Peace's majority shareholding will enable him to win the vote at the WBA Holdings AGM on November 6.

He added that shareholders with fewer than 10 shares who do nothing will have their shares sold in a tender process and will receive money from the sale.

Shareholders wanting to keep a stake must either round up their shareholding or join together with others, to form blocks of 10 shares.

S4A, along with other larger shareholders, are determined to prevent Peace taking his shareholding from the current 52 per cent to more than 75 per cent – a level that would give him significantly more power.

Mr Reynolds said: "I think Jeremy Peace has done an admirable job in the time he has been here but, whoever it is, I don't want one individual controlling the club absolutely."

Around 60 shareholders attended the meeting with all-but-three saying they intend to round up their shares.

Shareholders can contact S4A for information on 02476 311032 or by email at [email protected].