Sunday, July 20, 2008
Morgan Stanley and Dresdner, will have to place £3.6 billion of shares over the course of Monday or Tuesday!
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. Barclays said on Friday that only 19% of its investors took part in its £4.5 billion placing. When HBOS originally announced its rights issue two and a half months ago, it was seen as being heavily discounted against a share price that was then standing at 500p now it's 282p! But the knowledge that a large percentage will have to be sold on the market could see them drift beneath the rights price.