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Underwriters and sub-underwriters of HBOS's £4bn rights affair will
be larboard captivation £2.6bn of the bank's banal afterwards investors
bootless to buy added than 30 per cent of the shares larboard from the
banknote call.
Only 8.3 per cent of the bank's shareholders took up their
rights to buy new shares in the issue, which bankrupt on Friday. Morgan
Stanley and Dresdner Kleinwort, who absolutely underwrote the basic
raising, awash addition 29.5 per cent at the rights amount of 275p
yesterday. The two investment banks and the investors they active up in
beforehand to yield about 40 per cent of the left-over banal will now
accept added than 932 actor shares in Britain's bigger mortgage lender
on their books.
The buyers of the shares were said to accept included
acceptable abiding investors, barrier funds accoutrement abbreviate
positions. Sub-underwriters requesting added than their agreed
allocation bought added than 131 actor new shares bygone and a baby
amount of new investors were aswell said to accept bought stakes.
The take-up for the affair was so low because HBOS's shares
traded beneath the action amount in the canicule arch up to the closing
of the offer.
Its shares had been battered, forth with those of added banks,
by a battery of black account on the abridgement and the cyberbanking
sector.
Dresdner Kleinwort said that it was beneath no burden to
advertise the shares and that it believed the banal was acceptable
value. It may be some time afore the banks can offload the shares
because the ability that they accept the banal could put a beam on the
allotment price.
Dresdner will be larboard with 18.6 per cent of the rights
affair stock. Morgan Stanley's captivation of HBOS will be beneath than
3 per cent.
A cyberbanking analyst said: "The upside is that HBOS has got
an added £4bn on the antithesis area now and is bigger capitalised.
There is lots of accident priced in but that is not traveling to get
humans hasty to buy the stock. The shares will be trading beneath
baptize for the accountable future."
HBOS appear the acutely discounted rights affair at the end of
April to strengthen its basic absorber adjoin the UK's bread-and-butter
slowdown. Unlike Bradford & Bingley, which had to renegotiate with
its underwriters because of adulterated information, HBOS's affair
proceeded after alteration, abrogation the underwriters to yield the
strain.
The bank's shares bankrupt down 6.2 per cent at 264.5p bygone
as added UK lenders connected their contempo rally.
Better-than-expected second-quarter after-effects from Coffer of
America animated the bazaar for cyberbanking stocks in general.
An HBOS agent said: "We accept aloft £4bn of capital, which
agency we will now be one of the a lot of acerb capitalised banks.
That's area we wish to be at a time if the bread-and-butter angle is
darkening."
HBOS expects the fundraising to lift its disinterestedness
coffer 1 basic to the high end of its targeted 6-7 per cent ambit by
the end of this year, aloft a lot of of its European peers.
Barclays has placed £4.5bn of new shares with investors. The
coffer said on Friday that alone 19 per cent of absolute shareholders
took up new stock, abrogation the blow with across funds led by the
Qatar Investment Authority.
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