Cash calls announced for UK companies
With news that Taylor Woodrow is looking to tap shareholders for over £500 million and 3i is looking for around £700 million we could be at the start of a significant cash raising phase of the UK recovery. These are just the latest in a long line of recent fundraisings, with the exception of UK banks, with many more expected as any recovery in UK economy offers companies the opportunity to tell "an upbeat story".
However, as we reported yesterday many analysts now believe Barclays Bank for one "missed an opportunity" when it declined a window of opportunity to raise significant funds on the back of impressive results. The ongoing increase in fund raisings will test institutional investor confidence and private investor confidence to the full as the ongoing UK recovery moves on to a new stage. It will be interesting to see how investors react over the coming weeks and months as the dash for cash becomes more and more desperate.
There are concerns that city underwriters will still be asking for significant fees if they decide to underwrite any future fundraisings. There are still significant risks on the downside if more bad news appears and the worldwide economy takes another downturn.
Share this..
Related stories
Greggs warns of increase in prices
Greggs, the baker with exposure to many areas of the country, has today warned that an increase in wheat prices will ultimately feed through to the bottom line. The company expects bread and similar products to increase in price in the short to medium term although the company believes that the short-term wheat price is inflated. The price of wheat has increased by over 30% during the last seven d...
Read MoreUK banks made £15 billion in first six months of 2010
The big five banks in the UK this week reported combined profits of £15 billion in the first six months of 2010 in sharp contrast to the massive losses reported last year. Despite the fact that UK taxpayers now stand on a £6.7 billion paper profit on investments in Royal Bank of Scotland and Lloyds Bank there is still concern about the level of liquidity in the UK business and consumer markets....
Read MoreInterest rates bite house prices
Five interest rate rises in the last 12 months are beginning to rein in house prices, the latest research has said.According to Rightmove house prices rose 0.3 per cent in July, 0.5 points behind the growth experienced in June.The online property firm says that this is the lowest monthly rise its survey had recorded this year and contributed to annual house price inflation of 10.3 per cent.In June...
Read MoreJaguar Land Rover reports surge in sales
Jaguar Land Rover, owned by Indian giant Tata, has today revealed that sales of Jaguar's increased by 5% last month with sales of Land Rovers rising by an impressive 45%. This is a company which was recently at the centre of a tug of war between its parent company and the UK government which refused to sanction a bridging loan when the UK car industry was at its lowest point. However, it is iro...
Read MoreTaylor Wimpey given more breathing space by lenders
Taylor Wimpey, one of the U.K.'s best-known and largest housebuilders, has this evening been given until 31 March to sort out its finances and get the company back in order. Recent discussions with the company's financing partners have concluded with an agreement to review the company's balance sheet and debt structure no earlier than 31 March 2009. Like so many in the industry Taylor Wimpey has s...
Read More