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B&B Rights issue.. take up the offer ?

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luvpump
luvpump Posts: 1,621 Forumite
Part of the Furniture Combo Breaker
in Savings & investments
My holding is the common 250 & it has been a good return in terms if dividend, but now ime wondering if i should take up the Rumoured offer..If I qualify that is.. Ive gone past the sell point now & will just hold onto what i have, but on the face of things, the issue does seem a decent offer..?
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  • Speculator
    Speculator Posts: 2,350 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    The closing price on Tues was 158.75p and you will be offered 48% below this closing price (less 76.2p) which equals 82.55p.

    I wonder how far the B&B share price will drop to by the time of the rights issue. The further it drops, the less attractive the offer.
  • bristolleedsfan
    bristolleedsfan Posts: 12,645 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Speculator wrote: »
    The closing price on Tues was 158.75p and you will be offered 48% below this closing price (less 76.2p) which equals 82.55p.

    I wonder how far the B&B share price will drop to by the time of the rights issue. The further it drops, the less attractive the offer.



    http://forums.moneysavingexpert.com/showthread.html?t=836485&page=3

    Hello Mr Speculator :wave: What will be the outcome for those who dont buy the new shares after all B+B share price has always been lacklustre.

    Men with bowler hats now coming cap in hand. :eek:
  • ad44downey
    ad44downey Posts: 2,246 Forumite
    luvpump wrote: »
    My holding is the common 250 & it has been a good return in terms if dividend, but now ime wondering if i should take up the Rumoured offer..If I qualify that is.. Ive gone past the sell point now & will just hold onto what i have, but on the face of things, the issue does seem a decent offer..?
    Do you really want to give these pork pie tellers any more money?

    14 April 2008:
    Contrary to press speculation today, Bradford & Bingley announces that it is not intending to issue equity capital by way of a rights issue or otherwise. Bradford & Bingley has a strong capital base, above its regulatory requirements, and as a result of the Board’s conservative approach, has funded its business activities through 2008 and into 2009. In the current market environment, the Board will naturally continue to monitor closely the balance sheet strength of the business and its funding plans.

    14 May 2008:
    The Board of Bradford & Bingley plc announces a rights issue to raise approximately £300 million, net of expenses, in a 16 for 25 rights issue at an issue price of 82 pence per Bradford & Bingley share. This represents a 36% discount to the theoretical ex-rights price and a 48% discount to the closing price of Bradford & Bingley shares of 158.75 pence per share on 13 May 2008, the last trading day before this announcement.
    The proceeds of the rights issue will strengthen the Group’s capital position and will mitigate the impact of the previously announced reductions in the value of certain of the Group’s treasury investments.
    Krusty & Phil Madoff, 1990 - 2007:
    "Buy now because house prices only ever go UP, UP, UP."
  • bristolleedsfan
    bristolleedsfan Posts: 12,645 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ad44downey wrote: »
    14 April 2008:
    Contrary to press speculation today, Bradford & Bingley announces that it is not intending to issue equity capital by way of a rights issue or otherwise. Bradford & Bingley has a strong capital base, above its regulatory requirements, and as a result of the Board’s conservative approach, has funded its business activities through 2008 and into 2009. In the current market environment, the Board will naturally continue to monitor closely the balance sheet strength of the business and its funding plans.

    14 May 2008:
    The Board of Bradford & Bingley plc announces a rights issue to raise approximately £300 million, net of expenses, in a 16 for 25 rights issue at an issue price of 82 pence per Bradford & Bingley share. This represents a 36% discount to the theoretical ex-rights price and a 48% discount to the closing price of Bradford & Bingley shares of 158.75 pence per share on 13 May 2008, the last trading day before this announcement.
    The proceeds of the rights issue will strengthen the Group’s capital position and will mitigate the impact of the previously announced reductions in the value of certain of the Group’s treasury investments.


    14 June 2008

    The Board Of Bradford & Bingley plc have received a bid approach from LloydsTSB, It is the intention of the Board to put these bid proposals to its Shareholders. :j :T :j
  • ad44downey
    ad44downey Posts: 2,246 Forumite
    This broker says sell:

    "Panmure Gordon reiterated its sell recommendation estimating the rights issue would lead to an 80% dividend cut."
    Krusty & Phil Madoff, 1990 - 2007:
    "Buy now because house prices only ever go UP, UP, UP."
  • johnbfan
    johnbfan Posts: 236 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    bristolleedsfan wrote: »
    14 June 2008

    The Board Of Bradford & Bingley plc have received a bid approach from LloydsTSB, It is the intention of the Board to put these bid proposals to its Shareholders. :j :T :j

    Could someone please explain what this means? Does it mean that B&B will be sold to Lloyds TSB?
    I'm stressed enough over this - please don't add to it.:eek: :cry:
  • catz1ct
    catz1ct Posts: 828 Forumite
    Part of the Furniture Combo Breaker
    I hadn't heard about this! There seems to be a a lot of companies doing rights issues at the moment! Must be getting short of money.
    :rotfl:
  • Steve_xx
    Steve_xx Posts: 6,979 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    johnbfan wrote: »
    Could someone please explain what this means? Does it mean that B&B will be sold to Lloyds TSB?

    No, it does not mean that at all. There has been no bid approach from LloydsTSB to Bradford & Bingley. I'm unsure why the poster thinks that there will be a bid from LloydsTSB and on that particular day.
  • bristolleedsfan
    bristolleedsfan Posts: 12,645 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    johnbfan wrote: »
    Could someone please explain what this means? Does it mean that B&B will be sold to Lloyds TSB?


    Was a pun. :o based on the joke Bradford and Bingley directors have made of the PLC.

    It will be interesting to see what the value of Bradford and Bingley shares are one day before its rights issue is implemented.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Part of the Furniture Combo Breaker
    You will most definatly want to take up the rights offer. This will ensure you own the same proportion of the company so that in future you recieve the same dividend.

    Selling a company in a bad market environment is the wrong time to sell, wait for the next property boom in 15 years time and collect a lot of dividends in between.
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