HBOS shares

thumshie

stevetodd wrote: »

where did you hear that it was at 300p a share?

The bbc web site article states
http://newsvote.bbc.co.uk/1/hi/business/7620483.stm

The valuation of HBOS shares would be closer to last week's closing price of 300 pence rather than their current level of around 100p.

Edit: Now Peston is back tracking on his valuation
http://www.bbc.co.uk/blogs/thereporters/robertpeston/

Well, maybe I've slightly over-egged the price that Lloyds TSB will pay for HBOS. Perhaps it will be nearer £2 than £3.

fatpig_2

Lloyds shouldn't pay more than a quid a share for it as it really is a shoddy bank

nomoneyuser

With HBOS share price at such a low value (nearly £1) and the talk is that they will merge with LloydsTSB, what would happen if you bought shares now? Do you shares become part of the merger? Is it a good time to buy shares in HBOS?

dunstonh

fatpig wrote: »

Lloyds shouldn't pay more than a quid a share for it as it really is a shoddy bank

Its not actually shoddy. The products they retail are generally poor quality (based on whole of market options). Their service can leave a bit to be desired at times but financially they are not shoddy.

Gwhiz

nomoneyuser wrote: »

With HBOS share price at such a low value (nearly £1) and the talk is that they will merge with LloydsTSB, what would happen if you bought shares now? Do you shares become part of the merger? Is it a good time to buy shares in HBOS?

The price of shares can go down as well as up. If you think they'll go up then buy!

Gwhiz

dunstonh wrote: »

Its not actually shoddy. The products they retail are generally poor quality (based on whole of market options). Their service can leave a bit to be desired at times but financially they are not shoddy.

And Lloyds would love to get all their customers!

nomoneyuser

Gwhiz wrote: »

The price of shares can go down as well as up. If you think they'll go up then buy!

If you but shares in a company/bank and that bank/company merges or is taken over, what happens to your shares? Do they become shares in the new bank/company? Do they get frozen at the price they where at the time of the merger/take over?

sabretoothtigger

It depends how the take over is done. The A&L take over was above their price at the time


Hbos sent out a letter today seeming making 1st of october the date for ex-div to be paid in shares equalivent to 6.1p measured by the value at that time. The final dividend will be cash

Gwhiz

nomoneyuser wrote: »

If you but shares in a company/bank and that bank/company merges or is taken over, what happens to your shares? Do they become shares in the new bank/company? Do they get frozen at the price they where at the time of the merger/take over?

It depends on the terms of the deal. Normally your existing shares would be converted into shares in the new combined organization!

meester

dunstonh wrote: »

Its not actually shoddy. The products they retail are generally poor quality (based on whole of market options). Their service can leave a bit to be desired at times but financially they are not shoddy.

Financially they are very weak, and becoming dependent on unsustainable expensive short-term funding. A third of their mortgage book has 90%+ LTVs (i.e. about 3 months away from negative equity at current rate of progress), and their loans ratio is far higher than other banks.