Anyone looked at Highway insurance. Div yield of 8.82 and a PE of 5.22.
Share price at an all time low.
Seem cheap, am I missing something?

Looks lovely, doesn't it? ;-)

LONDON, Aug 28 (Reuters) - British motor insurer Highway Insurance Plc has agreed to a takeover by mutual society Liverpool Victoria Insurance Company in a deal worth around 150 million pounds ($276 million), the companies said on Thursday.

Liverpool Victoria is offering 73.35 pence per share, plus the interim dividend of 1.65 pence, to give a total 75 pence cash per share.

Highway shares were up 14 percent at 73 pence early on Thursday.

The offer represents a premium of about 47 percent to Highway's closing price of 49.75 pence on Aug. 26, the day before Highway announced it was in advanced takeover talks with a single party, a statement that sent its shares up nearly 30 percent.

Liverpool Victoria said there was 'strong industrial logic' to a combination of the two general insurance businesses.

The deal had the potential to accelerate Liverpool Victoria's aim of being a top five insurer in its markets by 2012, it said.

Highway Insurance CEO Andrew Gibson called the offer 'an attractive financial result' in the statement and said the combined business would have 'greater resources to capitalise on opportunities in the broader general insurance market'.

Highway separately reported on Thursday that its first-half pretax profit fell to 1.4 million pounds from 11.8 million a year ago.

Happy days for Highway holders, me included, that bought in during the recent SP weakness.

nice day

Price is at potential offer, discounting dividend. The question now is what to do - hang around for a potentially better offer or take the money and run.

I'm hanging around Big Al. No-lose situation really. If the offer is withdrawn the shares will obviously head southwards but the juicy dividend will be there. And I didn't buy the shares for their take-over potential so this is just a bonus for me.

It's always a difficult one, queen1. Personally, I'm not inclined to hang around in a bear market for a bid to fail so sorely tempted. I'll probably sleep on it over the weekend.

Best of luck with your decision :)

FYI, I've cashed in. I'll take the 42% on last week's purchase in the SIPP.

Fair enough. Spend it wisely!