Will you be buying shares in Lloyds TSB?

jibberjabber_4

My Mom works at C&G - they were more pee'd off at the fact they weren't officially told they were losing their jobs until 2pm today - despite the fact the branch closures had been headline news since early this morning and they'd had a constant stream of customers closing their accounts and telling them the brancjh was to close since opening the doors.

catz1ct

The staff are always the last to know.

mrposhman

halight wrote: »

87% of the open offer shares were taken up. That left 13% of the share that were to be pleced into the market yesterday. The sale of these is what pulled down the peice. Some that took up the offer will also try and sell there new shares at a profit today and in the days to come. This very well may pull the price down a bit more.

The 13% went to the underwriter (government) and were not placed on the open market as suggested.

opinions4u

mrposhman wrote: »

The 13% went to the underwriter (government) and were not placed on the open market as suggested.

That's not what LBG are saying.

http://www.lloydsbankinggroup.com/media/pdfs/investors/2009/2009Jun8_LBG_P&COO_Completion(US).pdf

"Lloyds Banking Group plc (the “Company”) announces that the joint bookrunners have today procured placees for all of the 1,365,380,615 Open Offer Shares (representing approximately 13 per cent of the total number of Open Offer Shares) for which valid acceptances were not received under the Compensatory Open Offer (the “Rump”), at a price of 60 pence per Open Offer Share, a premium of 21.57 pence to the Issue Price of 38.43 pence per share."

"HM Treasury’s holding in Lloyds Banking Group as a result of the Placing and Compensatory Open Offer remains

unchanged at approximately 43.4 per cent of the enlarged issued ordinary share capital of the Company."

sabretoothtigger

Thats not bad really, they got another £819 million in cash by giving people a 5% discount. Lucky banks, xlf were in favour today

Kua

sabretoothtigger wrote: »

Thats not bad really, they got another £819 million in cash by giving people a 5% discount. Lucky banks, xlf were in favour today

Who exactly bought those shares that were not taken up under the open offer (the 13%)? I think you might be alluding to the buyer in that second sentence but I can't tell .

halight

Thrugelmir wrote: »

The restructuring of the business is going to hit the bottom line in the short term. Plus further debt provision and write off's as the effects of the downturn impact. So any dividend for at least 2 years is unlikely.

Still a long term buy when the price is right though.

Yes i understand what your saying what i should have said was that i hope that there will be a divi and that the share price would be a little over £1.00 in a years time.

Im in it for the long tearm anyway. At the moment im not planning or thinking about selling my lloyds holding for at least the next ten years.

cardsharps

opinions4u wrote: »

That's not what LBG are saying.

http://www.lloydsbankinggroup.com/media/pdfs/investors/2009/2009Jun8_LBG_P&COO_Completion(US).pdf

"Lloyds Banking Group plc (the “Company”) announces that the joint bookrunners have today procured placees for all of the 1,365,380,615 Open Offer Shares (representing approximately 13 per cent of the total number of Open Offer Shares) for which valid acceptances were not received under the Compensatory Open Offer (the “Rump”), at a price of 60 pence per Open Offer Share, a premium of 21.57 pence to the Issue Price of 38.43 pence per share."

"HM Treasury’s holding in Lloyds Banking Group as a result of the Placing and Compensatory Open Offer remains

unchanged at approximately 43.4 per cent of the enlarged issued ordinary share capital of the Company."

Does anyone know when those who did NOT take part in the open offer will receive their monetary compensation of 21.57 pence per share? Thanks

sabretoothtigger

Kua wrote: »

Who exactly bought those shares that were not taken up under the open offer (the 13%)? I think you might be alluding to the buyer in that second sentence but I can't tell .

Dont know exactly, big british investors I guess. Ftse trackers would need lloyds shares but also normal investment funds and speculating managers
I just meant in general the trend is up, which helps

mrposhman

opinions4u wrote: »

That's not what LBG are saying.

http://www.lloydsbankinggroup.com/media/pdfs/investors/2009/2009Jun8_LBG_P&COO_Completion(US).pdf

"Lloyds Banking Group plc (the “Company”) announces that the joint bookrunners have today procured placees for all of the 1,365,380,615 Open Offer Shares (representing approximately 13 per cent of the total number of Open Offer Shares) for which valid acceptances were not received under the Compensatory Open Offer (the “Rump”), at a price of 60 pence per Open Offer Share, a premium of 21.57 pence to the Issue Price of 38.43 pence per share."

"HM Treasury’s holding in Lloyds Banking Group as a result of the Placing and Compensatory Open Offer remains

unchanged at approximately 43.4 per cent of the enlarged issued ordinary share capital of the Company."

Hmmm interesting. I just assumed that they would put the shares to market (ie. underwriter) at that price but clearly not. Makes me wonder what the need for the underwriter was as it was highly unlikely that a a share priced at about a 36% discount to the market price would not be snapped up by being placed with institutions.

Thanks for the post, thats actually better for us shareholders than if HMG had got a bigger %.