LLoyds Open (Exchange) Offer NOV 09

x2-zero

Thanks 00ec25 and Richard DandR for the reply. Can you clear up the amount i would have if i bought the rights would the total be 424+317 = 741 or would i have 424 in total.

Lakeuk

The following link explains the 3 options available:-

http://www.thisismoney.co.uk/investing/article.html?in_article_id=495105&in_page_id=166

specialtroll- Downside of your option2 is that you'd also need to take into account the dealing costs

cheekykid

Richard_DandR wrote: »

If you look back to your original purchase of 10,062 shares, you should find that they cost £9,162.86. When Halifax added the nil paid shares they split this cost across your two holdings (£6,101.28 and £3,061.58).

You will still have topay the call of 37p for each of the nil paid shares if you want to take them up.

Why did they split my shares like that? Also what will happen once the right issue is resolved? Assuming I stay as I am now. What will happen to those nil paid ones which i didn't ask?

Lakeuk

cheekykid wrote: »

Why did they split my shares like that? Also what will happen once the right issue is resolved? Assuming I stay as I am now. What will happen to those nil paid ones which i didn't ask?

If you do nothing then Lloyds will sell on your nil-paid rights and pay you the proceeds. So if they manage to sell them for the current going rate of 17.75p per right then you'd get £2393.23

Richard_DandR

cheekykid wrote: »

Why did they split my shares like that? Also what will happen once the right issue is resolved? Assuming I stay as I am now. What will happen to those nil paid ones which i didn't ask?

As Lakeuk says, if you do nothing the lapsed nil paid shares will be sold on your behalf and the proceeds sent to your Halifax share account. You would not have any control over this process - it will happen automatically.

If you don't want to take up the shares but would prefer some control over the price you receive for the nil paid shares, you should sell them.

Assuming you sell or lapse the nil paid, the ongoing cost on your Halifax valuation will be £6,101.28. The proceeds from the lapse or sale of nil paid rights will be offset against the cost of £3,061.58 and show a gain or loss.

The reason for the split is that the new shares given to you have different characteristics to the original shares and therefore are valued differently. In due course, if the 37p per share call is paid, you would see these combine back into the LLOY line as all the shares would rank equally.

The cost allocation is largely due to accounting (eg for Capital Gains Tax) which is probably not relevant unless you have large gains for the year 2009/10 (more than £10,100).

sabretoothtigger

Best time to sell the rights has passed it looks like, last friday or first thing monday would have been ok, might as well take up the shares now and get the recovery they should see as they have fallen for no good reason imo.

People who let rights lapse will not be well paid it seems unless the shares should continue downwards I cant see that being best and despite the gloomy outlook on the price right now, price isnt everything

tonygee_3

These will be shorted to death,agree with sabre,too late to sell rights now,I would take up offer and if the banking sector continues to get battered then pick up some 'cheap' BARC or HSBA dont be tempted to buy more in LLOY after issue (eggs and basket approach)

x2-zero

Can i just be clear on this, if i buy the new rights they will be added to my original shares, not replace them.

Just_landed

x2-zero Can i just be clear on this, if i buy the new rights they will be added to my original shares, not replace them. >>>

If you part with £0.37 a share for the R I Yes you will end up with more shares;)

x2-zero

Just Landed- Yes i have been allocated 424 new shares,i already have 317 so will they be added together,in which case i will have 741 in total,is this how it works.