Will you be buying shares in Lloyds TSB?

ozzage

I'm going to take some of those 38p shares. Basically Lloyds is now "guaranteed" to survive the recession and I believe that they will come out strong, and lets' face it - huge - at the other end.

Govt. can in theory end up with a 77% stake but this is the worst case scenario and I don't believe will happen.

I suspect the SP will rise on Monday, but not to any ridiculous levels.

What we need is for investors to rush for these 38p shares and a) drive the price up and b) stop the govt. needing to buy them!

gozomark

ozzage wrote: »

. Basically Lloyds is now "guaranteed" to survive the recession and I believe that they will come out strong, and lets' face it - huge - at the other end.

Lloyds is (sort of), but shareholders aren't. It could still result in 5 years time with Lloyds coming out strong, but all existing shareholders wiped out. If this rescue fails, the next rescue will be full nationalisation.

tradetime

What we need is for investors to rush for these 38p shares and a) drive the price up and b) stop the govt. needing to buy them!

Obviously I don't know, but somehow I don't see that happening, I'd like to, but I just don't see that happening, if the share price runs up on Monday, it would likely be a good opportunity to exit. Government actions, both here and in the US are not solving the banking crisis, they are at best performing "Life support" actions, the patient remains critical and the progniosis remains poor (I know, overused analogy) But that said, I wish you the very best of luck with your position.

Just_landed

Let me get this right share holders are going to be offered shares @ 38.4 pence ?
Q = on what date do we have to own these shares ?

Q = So if we sell those shares the next day at whatever price we will be able to buy back @ 38.4 ?

Q = Can anybody clear this up for me ?

So I take it the share price is going to drop on Monday ? :think:

gozomark

http://www.lloydsbankinggroup.com/media/pdfs/investors/2009/2009Mar7_LBG_Asset_Protection_Scheme.pdf

Capital restructuring – replacement of existing preference shares

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The Group has today agreed with HM Treasury that on implementation of the Asset Protection Scheme the £4 billion of preference shares HM Treasury holds (together with accrued dividends) will be replaced with new ordinary shares. Eligible Lloyds Banking Group plc ordinary shareholders (Shareholders) will be able to apply to subscribe for approximately £4 billion of new ordinary shares pro rata to their existing shareholdings at a fixed price of 38.43 pence per share. This represents an 8.5 per cent discount to the closing price on 6 March 2009. These new ordinary shares will be offered to Shareholders and new investors on the same basis as the Placing and Open Offer in November 2008. The ordinary share offer is fully underwritten by HM Treasury on substantially the same fee basis as the Placing and Open Offer conducted in November 2008. There will be an excess application facility as in November pursuant to which Shareholders may apply for additional new shares in the ordinary share offer. The proceeds of the issue will be used to redeem the preference shares held by HM Treasury........

Further details and the terms and conditions of the ordinary share offer will be set out in the circular and prospectus, as applicable, the availability of which will be communicated to Shareholders in due course.
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ozzage

So new investors can also buy at 38p per share? Not just existing shareholders and the govt?

gozomark

thats what it says...

Buddy195

fatpig wrote: »

You'll be the only one in the queue for them. These share offerings are exclusively for mug punters as previous investors in such issues with RBS, B+B, Lloyds, HBOS, etc. have found to their cost.

:rolleyes: Dear me you must be awfully bitter about something, searching for one positive, none rude post by you but to no avail. Wonder what your motivation is for coming on here? Troll? Lost out big time in some share issue? Some professional interest in keeping share prices low? Not really going for the latter as doubt you have awareness of share trading...

Stavros_3

fatpig wrote: »

Jeez, decadentfool must be delighted now that he never bought any real lloyds shares, just made-up internet discussion board ones.

Oh come on, he did manage to make a killing when the stock market was closed

NPowerUser

You have got to feel sorry for some Lloyds shareholders.
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article5864463.ece

David Peters, 62, a semi-retired chartered accountant from Milton Keynes, said: “Our lifetime savings were invested in Lloyds and RBS. We had about £500,000 invested, including a £100,000 inheritance from my wife’s mother, and were taking out about £25,000 a year in dividends.
“Our savings are now worth £20,000. We’ve written off any dividends for the next two years.”
Ouch, thats gotta hurt.