Monday, April 28, 2008

HBOS, the UK’s largest mortgage lender, has said it expects a “modest single digit” decline in UK house prices this year.

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 (1031 views)
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10 thoughts on “HBOS, the UK’s largest mortgage lender, has said it expects a “modest single digit” decline in UK house prices this year.

  • “modest single digit” decline – seems a very conservative estimate to me.

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  • 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!

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  • 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

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  • mark wadsworth says:

    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.

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  • 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.

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  • “modest single digit” decline

    HBOS obviously need to dispense with its overpaid and ignorant economic advisers.

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  • 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.

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  • 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!

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  • TC- I wonder whether the banks were told to raise money by rights issues…

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  • Should customers seriously consider moving savings from hthe HALIFAX???

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