HBOS, the UK's most widely-held share, will seek to raise £4bn of extra funding from a rights issue for its existing two million shareholders.
The bank said it was writing off £2.8bn from the value of its investments hit by the US sub-prime mortgage crisis and the credit crunch. HBOS said the extra funding would permit international growth and allow investment in its residential mortgage and savings business. Shareholders will be offered two ordinary shares for every five existing shares they hold for 275p per share. This is a 45% discount on the closing price of its shares yesterday of 495.75p. Shareholders have until 7 August to take up the offer. HBOS shares are currently down 3.75 (0.76%) at 492.00 despite rising on th...
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