Online petition demanding a vote on Nationwide’s deal to buy Virgin Money passes 1,000 signatures
- Nationwide says City’s takeover rules prevent its members from having a voice
An online petition demanding a vote on Nationwide’s deal to buy Virgin Money has passed 1,000 signatures.
The building society, which is owned by its 16 million customers, plans to tap the lender to create Britain’s second-largest savings and loan group.
Nationwide insists City’s takeover rules prevent the mutual from giving its members a vote on the £2.9 billion deal.
Risky: Nationwide insists City’s takeover rules prevent mutual giving its members a say on £2.9bn deal
But campaigners say buying the bank is risky and will weaken Nationwide’s strong balance sheet. It is also unclear what benefit the members get from it, they add.
‘Nationwide is trying to keep discussion to a minimum, but why are they so scared of a vote?’ said petition organizer Mikael Armstrong. ‘Their approach seems to be ‘trust us’ – it’s a strange way to run a mutual.’
Armstrong has submitted the change.org petition to the association’s head office in Swindon – with the 500 signatures required under Nationwide’s rules to call a special membership meeting to discuss the deal.
Nationwide states that any vote by members would be ‘advisory’ and ‘non-binding’.