There has been much speculation floating about on Web Blogs and IBM regarding the sell-off of IBM or 'underperforming' parts of IBM. (Most notably the Outsourcing delivery part). This is starting to be of some concern to me, particularly if a Private Equity group makes a takeover bid. I understand there were resolutions at the recent IBM shareholder meeting to make this easier.
Should this happen, I am very unsure as to how safe the IBM pension would be in the hands of Private Equity. They have sometimes been described as 'locusts' only interested in short term-gain, plundering shareholder value for the gain of a few rather than growing it in the interests of many.
Anyway, I wondered if anyone knew if the UK pension fund would be safe if the IBM corp sold my division to such a group? My concern is that they do not seem to have the same obligations to report on their activities and I am worried that they would have the power to move my fund to the Caymans or similar where they could plunder it. I am an active C-plan member, probably with less protection than those being paid pensions already. I do not really understand how much protection my accrued benefits have if I am part of a sell-off.
I would be interested in any informed views that could help me understand better.
Boots is an interesting example of the uncertainty on the behaviour of these groups, where the Private Equity group has been told, by the Pension Fund Trustees, it must add extra funds to the Boots Pension fund to cover shortfalls. There is an interesting link: