11.   Generally, this insurance is organized by a leading merchant bank which will sub-contract a proportion of the insurance to other sub-underwriters for about half of the fee.

12.   To resolve this conflict of interest, a board appoints an independent adviser, usually a merchant bank.

13.   Issues are managed by domestic security dealers or by merchant banks and are largely sold to investors resident in the UK.

14.   Examples of merchant banks are Rothschilds and Hambros.

15.   Financial intermediaries include commercial banks, merchant banks, the National Savings Bank, building societies, finance houses and discount houses.

16.   It simultaneously arranges for its merchant bank to offer to buy from accepting shareholders who wish to take cash all or a proportion of those shares immediately.

17.   The merchant bank in turn may arrange for sub-underwriters to buy all or some of those shares for which the cash is required.

18.   The merchant bank is usually responsible for co-ordinating the transaction and for preparing documentation.

19.   Because the merchant bank or sub-underwriters are buying existing shares there will normally be a charge to stamp duty or stamp duty reserve tax on the sale.