lloyds shares rights issue price fall help pls guys

[matsmith]

from reading the lloyds RNS here is the paragraph that would apply:

Any shares not taken up by Qualifying Shareholders (or otherwise treated as not having been taken up pursuant to the terms of the Placing and Compensatory Open Offer) are expected to be placed in the market by the Joint Bookrunners (Citi, J.P. Morgan Cazenove and UBS) at the conclusion of the open offer process at a price not less than the 38.43 pence offer price plus associated placing expenses (the "Rump Placing"). Any proceeds of the Rump Placing in excess of the 38.43 pence open offer price (plus expenses) will be distributed on a pro rata basis to those Shareholders who did not take up their entitlement (in whole or in part) under the Placing and Compensatory Open Offer. Accordingly there will no longer be an excess application facility (pursuant to which Qualifying Shareholders would have been able to apply for additional new shares over and above their pro rata entitlement in the Placing and Compensatory Open Offer). The Placing and Compensatory Open Offer will be fully underwritten by HM Treasury.


so it seems that any shares that arent taken up by shareholders will be sold and any money over the 38.4p plus expenses will be given to the shareholders who didnt take up their full entitlement

as for how they will give her this money (assuming there will be any ofcourse), id have thought it would be credited as cash to her stockbroker account

when? i dont know, but the deadline for accepting the issue is noon on June 5 so i suppose you could assume around 2 or 3 weeks after this date?

[Hobo]

Just out of interest, what is the reason for not taking up the offer ? Seems slightly odd to me.

[citychap26]

That's fooking mental not taking up the offer.

I am bloody p*ssed off with Natwest Stockbrokers for messing up my trade with BARC @ 50p . Was too busy at work to call them and missed the boat.

However Lloyds at 39p is a steal.

[Hobo]

Regardless of whether they drop or not, at 38p I suspect if you didn't take up the option you would look back in a few years time & think ...................... doh.

[Hobo]

In most cases you are correct, however the share offer was open to all I understand who held shares up to 20th May & as such there are obviously also a number of people who have not paid greatly over the offer price (anyone who purchase later than 20th Jan at which point the share price hit 43p).

[Mclovin]

if their such a great buy why are they keeping the stress tests secret when the us released theirs...?

[Hobo]

Yes, I understand that they could have been sold at nearly £1.20 within last week or so, however from a personal point of view my recent purchases are purely speculative & I'm in for a decent term. As such the offer is a no brainer.

[matsmith]

Mclovin said:

if their such a great buy why are they keeping the stress tests secret when the us released theirs...?

absolutely mclovin

barclays results were released pretty quick too

[dibbly_dobbler]

anonymous said:

[redacted]

Nice write up Robin - thanks

I have been pondering what to do myself. As a staff member I already have a large number of LBG shares (large relative to the rest of my holdings anyway ) so I was leaning towards do nowt and wait for the cheque (then stick that in my ISA).

Any thoughts ?

[NoelWatson]

dibbly_dobbler said:

anonymous said:

[redacted]

Nice write up Robin - thanks

I have been pondering what to do myself. As a staff member I already have a large number of LBG shares (large relative to the rest of my holdings anyway ) so I was leaning towards do nowt and wait for the cheque (then stick that in my ISA).

Any thoughts ?

Yes - eggs in one basket

[johnfm]

Back to this - any views on whether price will fall or rise on the issue?

[Hobo]

I'd have thought fall, but still took up the option at 38p as can only see this as a winner long term.