HBOS share offer

moonrakermagpie

Hi there, I have just received a HBOS share offer, which I guess is to do with the lloyds merger.
The offer is for 1.3839 open offer shares for every one existing HBOS share at 113.6 pence per open offer share, offer ends 9 jan 2009.

Is this offer worth taking up, and could someone explain the pro's and con's please.

Cheers Steve

Mr_K

You can buy HBOS shares for 69p each on the open market. Shred their kind offer, everyone else has.....

Horace

I had the same thing - can't be bothered with them to be honest, I shall just keep the ones that I have and that's that.

earlgrey_3

Important not to confuse this with a rights issue. It's a Placing and an Open Offer, which as the latter name suggests is just an open invitation to invest to anyone who wants to apply. As the offer price is way above the market price they presumably don't expect anyone to apply with HM Treasury taking them up instead.

Unlike a rights issue there are no rights to sell if you don't take part and no dosh coming your way as a result. So probably as well to follow Mr K's advice.