HBOS shares

poppy10_2

HBOS shares up 40% today. Where are you, where are you?

sabretoothtigger

So it must be they are renegotiating to give better terms to hbos, confusing..


160/225= 0.71

Reaper

sabretoothtigger wrote: »

So it must be they are renegotiating to give better terms to hbos, confusing..160/225= 0.71

How do you figure that one? The LloydsTSB deal was 0.83 last I heard, so HBOS still needs to go up even further to reach it.

sabretoothtigger

Lloyds says no comment on report of HBOS deal renegotiation [SIZE=-1] LONDON (Reuters) - Lloyds TSB on Thursday declined to comment on a press report that it is renegotiating the terms of its planned takeover of rival HBOS
.
The Daily Telegraph reported that Lloyds was seeking new terms for the deal, quoting unnamed sources as saying it was "inconceivable" the takeover could go ahead on the current terms following a steep fall in HBOS shares.
A Lloyds spokesperson declined to comment on the report, citing Takeover Panel rules
[/SIZE]

Yes it could just be increased confidence in the deal I suppose but that doesnt match up imo, its too much of a change at the same time as a possible downgrade to hbos deal value just seems weird but thats typical of the market. Good news is a fall and bad news is a rise

Reaper

Interesting. I messed your earlier post somehow. Not sure I entirely believe it though - a lot of personal reputations have been staked on this from senior politicians.

On the other hand wasn't LloydsTsb one of those rumoured to have gone to the government to ask for more money? Perhaps they haven't got the readies to go through with the deal.

Only time will tell.

sabretoothtigger

Lloyds is really strong compared to hbos. Another factor and this is probably the real reason is that hbos needed to raise cash quite desperately to renew expiring credit market loans, out of all the banks they probably benefit most from the government loan and other initiatives. ie. they wont fail as bank before the deal is done.

I've no idea on the debt markets and thats whats driving the price I think. Even a graph of the libor changing would help give us a clue.

October_03_2008 wrote:

Reports regarding Standard Life's view helped propel HBOS shares up by 21% on Wednesday. Yesterday it emerged that Standard Life had bought 3.2 million shares in HBOS on Wednesday at prices between 131.99p and 154.3p.

http://www.theherald.co.uk/business/news/display.var.2456468.0.HBOS_shares_advance_as_takeover_by_Lloyds_wins_approval.php

October 8, HBOS shares had risen to 127p - up 35% - by 3.45pm. The spread on the mortgage lender's credit default swaps stayed constant at 270 basis points.

Lloyds TSB shares fell 6.4% to 211p, while its credit default swap spreads rose from 245bps to 255bps.

According to Lloyds' takeover offer on September 17, HBOS shares should be trading at 175p, or 0.83 of the current Lloyds share price. It is therefore trading at a 27% discount.

HBOS also revealed it had sold the retail and business arms of its Bank West subsidiary in Australia for $1.5bn. The deal removes £8bn of wholesale funding commitments and adds 28 basis points to HBOS's equity Tier 1 ratio. Credit Suisse advised.

ad44downey

A catastrophic day for the sick man of the UK banking sector

HBOS shares CRUMBLE 18% so far today

cbobting

itll all pan out nicely.

ad44downey

It's getting worse.

HBOS shares NOSEDIVE 22% so far today

sabretoothtigger

120/206 = .583