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From The Sunday Times
From The Sunday Times
July 20, 2008
High-street bank HBOS faces rights issue disaster
THE high-street bank HBOS will tomorrow admit to one of the most disastrous rights issues in corporate history when it concedes that as few as 10% of its investors took up its £4 billion share offer.
Its two underwriters, Morgan Stanley and Dresdner, will have to place £3.6 billion of shares over the course of Monday or Tuesday.
If they are unable to place the shares at the rights-issue price of 275p or above, they will be forced to take them on to their own balance sheets.
The two investment banks are thought to have sub-under-written about 40% of the issue but it still means they could be left with £1 billion worth of shares each.
Barclays said on Friday that only 19% of its investors took part in its £4.5 billion placing... More...
High-street bank HBOS faces rights issue disaster
THE high-street bank HBOS will tomorrow admit to one of the most disastrous rights issues in corporate history when it concedes that as few as 10% of its investors took up its £4 billion share offer.
Its two underwriters, Morgan Stanley and Dresdner, will have to place £3.6 billion of shares over the course of Monday or Tuesday.
If they are unable to place the shares at the rights-issue price of 275p or above, they will be forced to take them on to their own balance sheets.
The two investment banks are thought to have sub-under-written about 40% of the issue but it still means they could be left with £1 billion worth of shares each.
Barclays said on Friday that only 19% of its investors took part in its £4.5 billion placing... More...
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