Halifax in trouble maybe ??

[setmefree]

BBC NEWS | Business | HBOS announces share sale details

Now not being negative,BUT every time a Bank comes up with an offer of shares at a reduced price it quickly goes down the pan

[setmefree]

Re: Halifax in trouble maybe ??

I especially like the part where they say, The shares are being offered at a 45% discount to the market price of 495.75p the day before the rights issue was first announced.

With today price being 342.25p, i guess it's not such a good deal

[stevokenevo]

Re: Halifax in trouble maybe ??

BBC NEWS | Business | HBOS announces share sale details

Now not being negative,BUT every time a Bank comes up with an offer of shares at a reduced price it quickly goes down the pan

These share issues are usually backed by underwriters so that in the eventuality that they are not fully subscribed they will get their dosh anyway.

I think this is the most straightforward way for the banks to raise additional funds, rather than selling off assets etc.

I wouldnt worry, i dont think we have another northern rock on our hands.

Incidently, RBS group (one of the 5 biggest banks in the world) have just in the last week had exactly the same rights issue!

[stevokenevo]

Re: Halifax in trouble maybe ??

There is a bit more info here into the recent rights issues.

The only reason is is of interest to me is because i took up my allocation lol