sky = hbos - lloyds deal done!

baby_boomer

Cranston wrote: »

Here is where you are wrong.

The share price did not fall by its own accord. The share price fell because the markets correctly anticipated that the HBOS loan book was very weak. The loan book was weak because of bad management decisions - this and only this was the root cause.

I disagree that the loan book was the fundamental problem, as opposed to Halifax's funding problem in the credit crunch world. It was this that the short sellers identified as its fundamental flaw.

Had the government not withdrawn its funding package for 1 october - before hastily reinstating and extending it - and if the government had banned short selling of banks earlier, I still believe that Halifax would be standing.

TREVORCOLMAN

I have just received a letter from my bank:

Dear.......

As you are now overdrawn by £1M, which you have squandered, the British Govermnent have just signed a cheque for this amount which we have paid into your account.

:j

TREVORCOLMAN

I spent most on sex, drugs and rock and roll, the rest I just squandered.

:money:

baby_boomer

The bank hasn't squandered the money. The vast majority of the mortgage debt will be repaid.

And all banks lend money they don't have. That's what banks do!

lynzpower

dopester wrote: »

Can someone let me know if you see any Halifax television adverts or not during the next couple of weeks?

Thanks.

I don't watch much telly, and was wondering if the Halifax adverts have been pulled or are still being broadcast.

Halifax pulled its chirpy chappy tv advertising a few weeks ago I read ( on here? radio 4, god I dunno) as this cheerful smiley hand clapping all-dancing approach to banking was seen as "inappropriate" in this climate.

OTOH maybe they were just trying to save a bit of money :rolleyes:

marvin

adrian2000 wrote: »

If this deal is set to go ahead like it is, does it really matter what the HBOS share price is now? If the takeover pice is actually 0.83 Lloyds shares to 1 HBOS one, if the Llloyds TSB share price more important?

For example if the share price of Lloyds TSB share price went to say £5.00 and the above share ratio is used, then each HBOS share holder would get £4.15? Or did they fix the price on the day when the anounced the takeover?

Adrian

No the real price for HBOS will be the price of the Lloyds shares on the day the swap is done. I calculated yesterday that the deal was worth about £2.66 per share (with the Lloyds price at the time I did the calculation of about £3.20) if the swap had been done at that time.

The HBOS share price is likely to shadow that rise and fall in the coming months.

It is of course only worth that to HBOS share holders if the deal goes through and if you can sell the shares before the Loyds Halifax share price drops through the floor!

The only time that a takeover is at a set price when its an all cash offer (as with Sainsbury's earlier this year that would have been all cash and it was finding the fixed cash price that was causing the issues.) and no shares are involved. There can be a mixed share/cash offer but this again is reliant on the price of the shares to be received on the day the shares are issued.

HTH