UK: HBOS mulls plan for extra funds

Blue_Horseshoe · April 28, 2008, 4:52pm

From BBC website, 28th April 2008

More of UK banks being made “share the pain” with their share holder before they can avail of the Bank of England funding/‘asset’ swap.

Blue Horseshoe

Green_Bear · June 11, 2008, 9:27pm

Pressure was mounting on HBOS this afternoon after its shares fell below the price at which it is planning to raise £4bn in a cash call on investors.

Shares in the country’s biggest mortage lender closed at an all-time low of 258p, well under the 275p rights issue price. Today’s near-12% fall in the HBOS share price came amid mounting concerns that the housing market is wobbling under the pressure of the credit crunch. Housebuilders’ shares have also fallen sharply this week following data from the surveyors body RICS which showed that house sales are at their lowest level since it began collecting data in 1978.

With six weeks to go before HBOS is due to complete its cash call, the bank may now face pressure to restructure its rights issue. Bradford & Bingley was forced to take the unprecedented step of repricing its rights issue a fortnight ago when its shares traded close to its rights issue price and it issued a profits warning.

The share price drop forced the bank to issue a stock market announcement this afternoon. >>>>

HBOS falls below rights issue price
guardian.co.uk/business/2008 … eed=uknews

Halifax (until November 2006, Bank of Scotland (Ireland)) is part of the HBOS group.