Lloyds Tsb Share's

Just_landed

In December excisting LLoyd's TSB share holders are going to be offered more shares @ £1.73 a share but todays price is £1.25.

My question is why buy at £1.73 when they can be bought tomorrow at £1.25 Thanks folks. :think:

digerati

Just_landed wrote: »

In December excisting LLoyd's TSB share holders are going to be offered more shares @ £1.73 a share but todays price is £1.25.

My question is why buy at £1.73 when they can be bought tomorrow at £1.25

Smart investors bought them at £1.21 at a savings of 52p per share over the rights issue. It makes absolutely no sense to buy them at the higher price just to prevent your shareholding being diluted when you can buy them cheaper in the market. The only difference is unsold rights issue shares will be purchased by HMG i.e. taxpayers.

Just_landed

Thanks digerati that is what I thought but I asked just in case I was missing something.
:beer:

pizzagirl

digerati wrote: »

Smart investors bought them at £1.21 at a savings of 52p per share over the rights issue. It makes absolutely no sense to buy them at the higher price just to prevent your shareholding being diluted when you can buy them cheaper in the market. The only difference is unsold rights issue shares will be purchased by HMG i.e. taxpayers.

Even smarter investors wouldn't buy them at any price seeing that they are now saddled with HBOS