Lloyds/HBOS share price Monitor

Badger_Lady

Oh, they're wringing their hands with glee! Been trying to get a bite of the mortgage market for ages (Cheltenham & Gloucester being their only link thus far). They've been bidding on all the other mortgage-based companies that were going cheap, and suddenly here's their opportunity to actually defeat competition rules by taking over a major bank and becoming one of the largest financial institutions in Europe!

When the market finally starts to recover, the new Lloyds will be at the forefront. Very happy bank.

setmefree

Mmm l think i will now buy some shares and my choice is Laura Ashley Holdings;)

sabretoothtigger

Lloyds TSB To Place 5% Of Shr Capital To Boost Capital Ratio
By Marietta Cauchi
September 19, 2008 10:59 ET (14:59 GMT)

Sounds like good news:think:

UPDATE: Lloyds TSB To Place 5% Of Shr Capital To Boost Ratio (Adds analyst comment.)

By Marietta Cauchi
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--Lloyds TSB Group PLC's (LYG) Friday said it is placing of up to 5% of its issued share capital to boost the combined capital ratio following its merger with HBOS PLC (HBOS.LN).
Taking advantage of a historic rise in the price of financial stocks, Lloyds is raising the cash via an accelerated bookbuild to be managed by Citi Global Markets U.K. Equity Limited and Merrill Lynch International.
"The recommended acquisition of HBOS by Lloyds TSB announced yesterday provides a unique opportunity to accelerate and extend our strategy and create the U.K.'s leading financial services group," said Eric Daniels, group chief executive of Lloyds TSB.
On Thursday, Lloyds announced plans to acquire U.K. mortgage lender HBOS for GBP12.2 billion in an all-share deal.
The combined group's core Tier 1 capital ratio, or level of equity held against risky assets, is at 5.9%, which Daniels referred to as "robust" but not satisfactory.
The target is between 6% and 7% by mid-2010.
At end-June, Lloyds' standalone core Tier 1 ratio was 6.2%, while HBOS' was 6.5%.
At 1520 GMT Lloyds shares were up 50 pence, or 21%, at 287.5, compared with a rise of 12% in the FTSE General Financials sector index, giving it a market capitalization of GBP16.4 billion.
Analysts said this was a good time to go into the markets.
"They took the opportunity in a day like today to raise some capital...Indeed, there's a good vibe among investors," said Fox Pitt analyst Leigh Goodwin.
"There's also a recognition that banks still need more capital and having seen Barclays do it, now, we're seeing Lloyds do it," he added.
A representative for Lloyds TSB declined to comment on how much the bank planned to raise in the offering. Lloyds TSB said in its statement that pricing would be announced after the bookbuild which was being opened immediately.
On analyst estimated that, at current prices, the move could raise as much as GBP675 million.
On Thursday, Daniels told analysts that it would boost the capital ratio by paying the 2008 dividend in shares, by limiting the payout to 40% in 2009, and through cost synergies. He also said the bank may dispose of assets but didn't mention a share placement.
The offering comes just a day after Barclays PLC (BCS) Thursday raised GBP701 million through a one-day accelerated bookbuild, share placement to help fund its purchase of several assets from bankrupt Wall Street firm Lehman Brothers Holdings Inc. (LEH).
As an all-share deal, Lloyds TSB merger with HBOS doesn't require additional funding specifically for the deal.
Company Web site: www.lloydstsb.com
-By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241; [EMAIL="marietta.cauchi@dowjones.com"]marietta.cauchi@dowjones.com[/EMAIL]
(Vladimir Guevarra contributed to this report.)
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=Tuf6jlTSR9asUD3iYofXbg%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
September 19, 2008 11:26 ET (15:26 GMT)

Top performers in the banking sector included Royal Bank of Scotland , which vaulted 32%, Barclays (BCS), which surged 29%; and HBOS , which rose 28.9% to 223 pence.
At Friday's close, the bid for HBOS from Lloyds TSB (LYG) was worth 237.4 pence a share.
According to J.P. Morgan quantitative analysts, at Sep. 18,7.99% of Barclays shares were borrowed, 5.98% of Lloyds TSB shares were borrowed and 2.33% of RBS shares were borrowed.
Insurers also registered strong gains, with Prudential up 23.5% and Friends Provident rising 21.6%.
Other European shares were also much stronger on Friday and U.S. stocks rallied from the outset as the U.S. government said it was looking to buy bad assets from financials.
"I guess what this has done has given the market the ability to take stock for a while rather than continue into a downward spiral," said Moss.
"Although we don't know much detail on the U.S plans and we don't know how concrete the ideas are, something like that would be tremendously helpful in terms of drawing a line under the valuations of some of the assets out there and particularly some of the housing-related assets," said Moss.
Friday's financial-sector cheer spread to other sectors of the market, with miner Rio Tinto (RTP), up 14%, and the London Stock Exchange up 14.9%.
There were only five losers in the FTSE 100, with television broadcaster ITV ended 3.2% lower.
Music and book retailer HMV Group , which was the most heavily shorted stock in the U.K. market, rose 16.7%.

SocGen closes long/short banks basket after profit [SIZE=-1] Societe Generale has closed a long/short basket on banking stocks, not because of moves by regulators to ban short trading, but after Thursday's takeover of HBOS by Lloyds , SocGen said on Friday.
SocGen strategists said they started the long/short strategy on May 22.

The "bull basket" consisted of BNP Paribas , Santander , UniCredit and Barclays , while the "bear basket" comprised Lloyds, HBOS, Credit Agricole and Deutsche Bank , they said.
"Following yesterday's M&A announcement, which affects our bear basket, we elect to close our Long/Short strategy after 15.9 percent performance since inception. This compares to our benchmark index, the DJ Stoxx 600 , falling by 20.5 percent over the same period," the strategists wrote in a note
[/SIZE]

sabretoothtigger

Read today a company disclosing a short position on hbos and barclays of 1% stock

I meant to copy and paste it but I think this is the same story -
http://news.sky.com/skynews/Home/Business/Short-Selling-Crackdown-John-Paulson-Bets-Billion-Pounds-That-UK-Banks-Shares-Would-Plunge/Article/200809415106195?lpos=Business_First_Home_Article_Teaser_Region_3&lid=ARTICLE_15106195_Short_Selling_Crackdown%3A_John_Paulson_Bets_Billion_Pounds_That_UK_Banks_Shares_Would_Plunge



Hbos emailed me half a dozen times on this so fyi:

HBOS has announced that it has agreed to be acquired by Lloyds TSB Group plc (Lloyds TSB).

Subject to regulatory and shareholder approval, under the terms of the deal, each HBOS shareholder will receive 0.833 Lloyds TSB shares for every one HBOS share held. This values each HBOS share at 232p, a 57.8 percent premium to the HBOS closing price on Wednesday 17 September 2008, the last business day before announcement of the offer. It is expected that the deal will be completed at the end of 2008 or in early 2009.

HBOS has also announced that it continues to intend to issue shares to entitled shareholders by way of a capitalisation issue on Monday 6 October 2008, in lieu of its 2008 Interim Dividend. As a consequence of the proposed transaction with Lloyds TSB, HBOS has agreed that the number of shares to be issued will be calculated on the basis of 232 pence per HBOS share, being the value per HBOS share implied by the terms of the proposed Acquisition.

Ex div date?


Disclosed positions in lloyds - short 1.69% paulson&co. Long - 4.5% L&G

sabretoothtigger

there's a 50% to 60% overlap between the shareholders of the two banks. And if those shareholders were being rational, they would vote for it - because they are simply exchanging one load of paper, their HBOS shares, for another load, Lloyds TSB shares, and the terms of the exchange should be irrelevant to them.
For Lloyds TSB to do the deal, it needs a simple 50% majority of those voting in a poll of its own shareholders.

http://www.bbc.co.uk/blogs/thereporters/robertpeston/

ad44downey

sabretoothtigger wrote: »

http://www.bbc.co.uk/blogs/thereporters/robertpeston/

only problem is alot more than 50% of the shares are held by institutions rather than individual shareholders. So it's the institutions that will decide. It won't really matter what individual shareholders like me do

I want nothing to do with HBOS, they're nothing but a pile of toxic rubbish

sabretoothtigger

Those institutions will probably hold both shares so he is saying they will vote to merge because it improves their overall fund prospects.

They havent even scheduled a vote date yet, they are going to leave a cloud over the shares for months to come

sabretoothtigger

Just wondering where the support level for this share is when they are at 14 year lows anyway, a 7% drop tomorrow will mean back to 1993. Ratio at close was 0.725

sabretoothtigger

Royal Bank of Scotland is aiming to raise significant amounts of capital this week to meet a commitment to the UK government to boost its reserves, breakingviews.com has learned. The bank is hoping to raise capital from three sources: selling ordinary shares to existing shareholders; selling preferred shares to existing shareholders; and selling preferred shares to the government.

RBS doesn't yet know how much capital it will raise, or whether existing shareholders will participate. The size of the capital injection will depend on the extent of write-downs on toxic assets it is required to take by the UK authorities, and the size of the provisions it is required to make for potential bad loans in the near future.

RBS's chief executive, Sir Fred Goodwin, is prepared to stand down if that is necessary to get the deal done. The bank is keen to complete a recapitalisation as rapidly as possible following a 62% collapse in the bank's shares last week.

Other banks have given commitments to the government that they will raise their Tier 1 capital by £25bn by the end of the year. The banks are Abbey, Barclays, HBOS, Lloyds TSB, Nationwide Building Society and Standard Chartered. HSBC has already made its capital injection

I think thats 25bn collectively not per bank! Obviously some will need it more then others, in the last share surge barclays and lloyds sold a load of shares to quickly raise money for their respective purchases

RBS is seen especially badly because they bought a bank at the height of the boom where as in comparison lloyds has got itself a bargain basement discount deal

Hsbc is such a beast they had it done in a day, probably just needed a 5 min phone call
http://www.breakingviews.com/2008/10/11/English%20Nanny.aspx?email

DocProc

If you want some really tip-top and completely up-to-date information on Lloyds TSB, then try this site:

http://finance.google.co.uk/finance?q=LLOY