Vote on N&P building society takeover

MEMBERS of the Norwich and Peterborough building society - which has a branch in Mercer Row, Louth - have been urged to back a proposed takeover by the larger Yorkshire Building Society.

They have been warned in a letter that failure to do so could lead to branch closures and ‘degradation of services’.

If the recommendation is approved, the deal is due to be completed on November 1 this year.

Pending a review, the Louth branch would be retained for a minimum of two years during which period it would continue to trade under its existing name. Staff have been told their jobs are safe.

In the past, members of other building societies have received either a cash bonus or shares if they have been taken over by a competitor or converted to bank status. But N&P say this will not be possible because of the requirement ‘to preserve capital’ for the Bradford based Yorkshire’s enlarged operations.

A special meeting is to be held in Peterborough on August 22 to allow members to discuss - and vote on - the takeover proposals.