Monday, Apr 28, 2008
HBOS, the UK’s largest mortgage lender, has said it expects a “modest single digit” decline in UK house prices this year.
telegraph: HBOS will attempt to raise £4bn
HBOS, the UK’s largest mortgage lender, is set to launch a rights issue to raise up to £4bn as it braces itself for an ongoing downturn in the UK economy.
The owner of Halifax and Bank of Scotland will make a final decision about whether to push the button at a board meeting today, ahead of its annual shareholder meeting tomorrow in Glasgow. If it goes ahead, it is likely to ask its brokers Morgan Stanley and Dresdner Kleinwort to organise the rights issue.
Posted by malct @ 08:54 AM (642 views) Add Comment
11 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. hpwatcher said...
“modest single digit” decline - seems a very conservative estimate to me.
2. cornishman said...
expects a “modest single digit” decline...
I seem to remember HBOS saying it didn't 'expect' to have any money problems a short while ago too!
3. malct said...
hpw and cornishman - exactly and
surely, and this is the point I'm trying to make, it doesn't fit in with going to shareholders for petty cash
4. mark wadsworth said...
This is all as predicted. UK banks will have to raise about £50 bn. RBS are to raise £12 bn, HBOS £4 bn and so on. You read it here first!
As a rough'n'ready guide, rights issues should be 20% - 30% of a bank's market capitalisation. HBOS currently has market cap of £18 billion.
5. cornishman said...
HBOS share price is £4.87 at the moment, and will presumably decrease further when it gets diluted with the rights issue.
I sold my 'freebie' HBOS shares last year for £8.00 - a total capital gain of £62 in the TEN years that I had them.
6. Ccamper said...
“modest single digit” decline
HBOS obviously need to dispense with its overpaid and ignorant economic advisers.
7. techieman said...
Cornish what you just said is why i always stag these issues - carpetbagging or otherwise. Yes can be wrong - e.g. All & Leicester i sold (i think) at six quid and they went up to around a tenner, but for the small amounts you get and the fact that you can put the money to other uses, i dont see much sense in holding these - well thats my view anyway. The only exception to this was Std Life - i have some endownments and it wasnt i didnt think it a good idea to sell i just really couldnt be ar*sed.
8. titaniccaptain said...
Are the banks raising money via shareholders so that they can snub Gordon Browns 50 Billion idea and then not be seen in such a bad light when they dont lower the rate of lending?
9. cornishman said...
techieman - the reason I kept my HBOS shares was to prove to myself that I would never be the right sort of person/personality to deal in shares. I think I have now proved my hypothesis!
10. d'oh said...
TC- I wonder whether the banks were told to raise money by rights issues...
11. Kent Man said...
Should customers seriously consider moving savings from hthe HALIFAX???