Qualified advisers answering your
Financial Questions
call 0800 092 1245

HBOS Sees £1.3 Billion Wiped Off Company Value

In a move which is heavily connected to the housing market, HBOS (consisting of Halifax and Bank of Scotland) saw £1.3 billion wiped off the value of the company. The share price is now well below the price at which investors are being asked to buy new shares in the £4 billion emergency fund raising exercise. So what next?

While the offer is fully underwritten, with Morgan Stanley and Dresdner Kleinwort having already agreed to purchase shares not taken up by shareholders, there may need to be some flexibility on the terms. At this moment in time is looks as though Morgan Stanley and Dresdner Kleinwort may well end up with the vast majority of the new shares, and while they would not look to dump the shares on the market immediately, they will not be long term holders.

This all adds to the feeling of woe in the banking sector just after a period in which hopes were high that the sector was over the worst. Quite where this latest collapse in the share price leaves HBOS remains to be seen but it looks as though the sector may well be in for a very rocky ride over the next 12 months.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details