HBOS shares fall below rights issue price
Times Online -- The Financial Services Authority's crackdown on short-selling failed to prevent shares in HBOS slipping below the bank's rights issue price on the first day of the new regime.
After opening at 300p a share, HBOS slumped to 273.75p before closing at 282.5p. It is the second time that the stock has fallen under the 275p subscription price, raising fears that investors could shun the capital-raising.
The bank's share price had been boosted by the City watchdog's new rules to stop short-sellers from forcing down a company's shares during a capital-raising. The rules were introduced after short-sellers routed HBOS in March by using rumours that the bank needed emerging central bank funding.
The new rules came into effect yesterday but a combination of unease over HBOS's trading update on Thursday and negative notes from analysts at Citigroup and Panmure Gordon prompted investors to dump the shares regardless.
After opening at 300p a share, HBOS slumped to 273.75p before closing at 282.5p. It is the second time that the stock has fallen under the 275p subscription price, raising fears that investors could shun the capital-raising.
The bank's share price had been boosted by the City watchdog's new rules to stop short-sellers from forcing down a company's shares during a capital-raising. The rules were introduced after short-sellers routed HBOS in March by using rumours that the bank needed emerging central bank funding.
The new rules came into effect yesterday but a combination of unease over HBOS's trading update on Thursday and negative notes from analysts at Citigroup and Panmure Gordon prompted investors to dump the shares regardless.