HBOS’ employee save for shares scheme rights issue is a failure.
A bigger trainwreck than Barclays. HBOS announced this morning that its £4bn rights issue has had just 8.29 per cent acceptance.
Underwriters, as reports today’s FT, are expected to try and dump whatever stock they fail to place on the open market – likely at an uncomfortable discount – over the coming days.
For anyone then, who subscribes to the view that a failed rights issue is not an unmitigated disaster, watch carefully. HBOS predicted to open down 4.6 per cent today. This note just through from a broker:
HBOS: underwriters have until tomorrow 4.30pm to sell the shares above 275p(a tall order). The 1.375bn shares are a huge overhang. We are recommending to investors to bid 225p for the shares when they are contacted by the underwriters.
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