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HBOS sees 8.29% take up of £4bn rights issue

HBOS has seen a disappointing take-up of its £4bn rights issue with only 8.29 per cent of the total of new shares having been bought.

In a trading statement today, the bank says that it has received valid acceptances in respect of 124,321,275 new shares.

This represents approximately 8.29 per cent of the total number of new shares offered to shareholders pursuant to the 2 for 5 rights issue announced on 29 April 2008.

HBOS’s underwriters, Morgan Stanley and Dresdner, now have until 4.30pm tomorrow to find subscribers for the remaining 1,375,341,053 new shares.

As HBOS shares were available last week for less than the 275 pence issue price, investors have not been keen to take up the new shares.

If the underwriters fail to find any more subscribers, they will subscribe themselves for any new shares which have not been bought.

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