HBOS Share Bumph

[Deleted User]

Has anyone read it, and can summarize what it's all about? All I really want to know is whether it's going to cost me anything. I'm regretting keeping my privatisation shares as it is, without pouring good money after bad.
I assume investing more money is optional!

Banderman

Yes it's optional. And I were you I wouldn't give them a penny more. You could well be throwing more money down the drain.

notis7

Banderman where on earth did you get that financial advice gem from? If you invested when shares were £10 I can understand your frustration but now is the ideal time to invest in these shares - when they are so low and the banking industry as a whole is facing low share prices...time to capitalise!!!

ad44downey

notis7 wrote: »

now is the ideal time to invest in these shares - when they are so low and the banking industry as a whole is facing low share prices...time to capitalise!!!

You're clearly bonkers!


HBOS shares down 3.5% onMonday, down 7% on Tuesday and down 12% Wednesday.

I presume you were similarly advising people to invest in Northern Rock shares as they went down the tank? :rotfl:

esbo

As I uinderstand it you have the right to buy shares at 275p, however as the price is now below that, nobody will be buying unless the price recovers.

Also as I understand it if the price stays below 275p, the underwiters will have to buy them at that price, ie at a loss to them.

However when the samething happened at B&B the underwriters managed to 'wrangle' out of the deal, somwhow and a new price was set or something like that.

That's all a bit odd because the underwriter were paid to take on that risk and then they did not fullfill their obligations. I wonder what will happen at HBOS?

Anyway anyone who execises their right as it stands will be buying shares worth less than 275p for 275p so I don't think there will be anyone taking up the offer!!

cal

It seems to me as the shares are continuing to fall the market does not have much faith in the deal. So should all us shareholders vote against the creation of new shares?

esbo

cal wrote: »

It seems to me as the shares are continuing to fall the market does not have much faith in the deal. So should all us shareholders vote against the creation of new shares?

Well probably no because the underwriters will have to buy them at a loss, but I am not too sure as there will be more share holders to share 'profits' (I use that term in the broadest sense of the word, ie including 'losses').
So at least HBOS raises the money it wanted. However I sold my shares this morning
and I am wondering if I still have my 'rights' in the issue, or indeed my vote.
Does my vote go to the mug, ( I mean person :rotfl: ) who bought the shares or do I still have it? I mean I have all the paper work etc...
Seems silly me still having the vote but the buyer of my shares probably won't be able to vote either?