HSBC "Rights"

firefly22

I have received a letter from HSBC offering me "rights" to a certain number of shares. There is an option to pay cash (they are discounted by approx 47.5%)for them, a cashless take up or to sell the rights. Alternatively I can allow them to lapse and perhaps get a small amount if they are sold.
I'm confused ! Does anyone have any knowledge or advice on this matter?

Cornishsaver_3

You have the 'right' to buy the shares at the discounted price of 254p on the basis of 5 shares for every 12 you already hold. eg If you hold ,say, 1200 shares you would be entitled to buy 500 at the price of 254p. To take up the rights the letter must be received at computershare by 11am, 3 Apr 09
Alternatively you can opt to sell your rights, which means that your entitlement will be sold in the market, and if they fetch a higher price than 254p you will be sent a cheque for the difference. If you do not respond to the letter this is what will happen.
Thirdly you can have a cashless take up. This means that some of your 'rights' will be sold to enable some of the 'rights' to be taken up at no extra cost to you. For this option computershare must receive the letter by 3pm, 27Mar 09.

I hope that is clear, but I have still not made up my own mind as the best option. I will watch the HSBC share price on Monday and Tuesday before deciding which option to take. This is a very heavily discounted offer with the current price at around 370p, so if the share price stays around that level I will probably take up the offer.

claireanded

Hi - does anyone have a view on this one?

I have approx 3000 shares (so if I buy it'll be approx £3200 to shell out)

I have these as part of a redundancy pay off, should have sold at the time (circa £8.50/share! oh those were the days!) I know the best thing to do with the existing shares I hold is to wait for better times and prices to go up again a few years hence the fact I still have them but what to do about the right issue?

Thanks in advance

caveman38

When was the last day of share purchase to qualify for the RI.

firefly22

Thanks Cornishsaver, I guess it's a case of watch this space !.......... for a day or two at least.

Cornishsaver_3

UK Record Date for entitlements under the Rights Issue




5.00 p.m. on 13 March

baggies666

I have some held with capita under the Hsbc employee share save scheme that became valid to sell in Feb but had no rights issue letter, wonder if I will be able to buy some more too

speedy_gonzales

If I take up the rights issue that I have are these then classed as "normal" shares i.e. they are no different to the current shares i hold in HSBC trading at 399 pence per share?

I have a collegue who thinks these are different to ordinary shares.

Thanks in Advance