Hbos Share Discussion Threads

[wskill] 29/12/2008 08:45

Can the HBOS shorts roll over on to LLoyds shares or must they close before the takeover .
rgds wskill

[hdenandy] 29/12/2008 08:43

So currently the share price is DOWN 0.3p, not UP 2.3p as ADVFN are showing ?

[a0148009] 29/12/2008 08:39

Yes the recorded closing price was the closing auction 67.8

AO

[hdenandy] 29/12/2008 08:26

Was the closing price on Christmas Eve not 67.8p ??

[debbiegee] 28/12/2008 18:14

re riva1do [spellt with no 1 not letter l]

He is an imposter making trouble accross the boards with nothing better to do in the Christmas holidays.

He is not the well known respected rivaldo !

[cpl593h] 28/12/2008 17:44

Some day all the clowns, sorry, I mean bloggers, will realise that a liquidity failure = failure....no ifs no buts.

Consider the knock-on effect on the credit markets of such an outcome and you'll know, very clearly, why what happened, happened.

[debbiegee] 28/12/2008 12:39

Strange it was only a few weeks ago that Hbos shares went over 113 and folks were saying,dont buy on the open market buy the preference shares ! LOL !!!

Lets face it ,even the bad news that keeps on coming was expected.

Another thought is,what aout all those paying fixed mortgages this will surely put some money into the kitty ?

[taffee] 28/12/2008 11:18

don't buy hbos in the offer,buy in the open market

your hbos shares wil be converted to lloy in jan at .605 of a lloyds share
what your broker is effectively saying is by buying hbos shares at around 65p,you are effectively buying lloys shares at substantial discount as hbos shares should be around 75p

closing lloy share price 124.1 x 60.05%=75.0805(what the hbos share price should be)

[tyranosaurus] 28/12/2008 11:13

I am being offered the chance to buy new HBOS shares at 113.6p in the open offer.
What is the point when HBOS shares are under 70p on the market.

Is this right or has my broker sent me a confusing letter and I can buy Lloyds TSB shares at 113.6p under this offer ?

[baronstjohn] 28/12/2008 06:20

HBOS was a long way from failure



« Previous « PreviousNext » Next »View GalleryPublished Date: 28 December 2008
TERRY Murden, in an otherwise excellent article ('Now the HBOS deal is done, the anxious wait begins for job cuts', Business, December 14), states what may seem plain fact, that "the real alternative to Lloyds TSB was the complete failure of HBOS". But, it was never that simple. It is not a view of the accounts, not even given the loan defaults in 2008. These are only 1.5% of the bank's assets, half of which should be recovered.
"Failure," commonly understood, means 'bankruptcy'. But there are no hard facts supporting this. Lord Dennis Stevenson said the bank was brought low by a liquidity problem.

The interbank market is lopsided, borrowers outnumber lenders, hence the Bank of England's interventions.

HBOS has substantial drawing rights at the Bank of England and the offer of a large Government stake. Its balance sheet is better than others'. It could have stayed independent. But, after a botched share issue and attacks by short-sellers that still continue,management panicked and agreed a firm deal with Lloyds TSB, brokered by the Prime Minister. Decided in haste, this will be repented at leisure.

Robert McDowell, Banking on Economics, Edinburgh

[taffee] 27/12/2008 10:29

andy hornby,stay low profile inho in 2009...i.e with a panic room nearby!

[baronstjohn] 25/12/2008 12:33

Merry Christmas to all my fellow HBOS writers. Enjoyed your comments throught the year 2008 and what a year. Lets hope that our link up with Lloyds will create a mega bank that everyone talks off and is successful for us all Good Luck and best wishes.

[taffee] 25/12/2008 10:05

traders are thick?

[bryan2] 24/12/2008 14:49

Was the leak an accident?

The infamous leak from the Treasury to Robert Peston that caused the run on Northern Rock (Oct2007) is mostly viewed as a stupid blunder, but now I'm not so sure.
The leak from the Treasury, some say, was to teach the Banks a lesson, but it got unexpectedly out of control.
Ive recently rethought the episode and a deliberate fully thought out leak makes a compelling alternative view.
The net result of the leak was the run on Northern Rock which transferred 12B£ cash to other British Banks and the forced transfer to HMG of probably the best mortgage book in the UK.
This extra cash boost to the other British Banks enabled them to stave off the effects of the liquidity freeze for a few months.
March 2008 (all British Banks cash strapped) the Government(BoE) introduces the Special Liquidity Scheme and exchanges gilts for Mortgage Backed Bonds.
In addition the Banks have to introduce rights issues RBS 12B£,HBOS 4B£,Barclays 4B£.
This measure proves insufficient.
Oct2008, HMG seizes control of further British Banks because of continued liquidity freeze. RBS 60%;HBOS/LLOY 42% Barclays forced to accept penal terms from Middle East Sheiks.
Within 12 months all British Banks brought to near ruin.
What would the situation now have been, if Northern Rock had not approached the BoE with the liquidity problem in Oct 2007.

[mattu11] 24/12/2008 09:07

I wonder what caused that then, LLOY up to 129 and HBOS down to 61?

[number1] 24/12/2008 08:31

I missed out - logged in too late :((

[simon_64] 24/12/2008 08:22

Me to Debs.

[debbiegee] 24/12/2008 08:09

WTF............. I have bought some more !

[debbiegee] 24/12/2008 07:06

lloy may not drop on merger day as it already dropped in anticipation.

An overlaid graph of the 2 stocks should show how stable the 10% away from parity we have been.Unless there has been a worry the stock has always been pounced on at more than a 10% discount to parity.

[hamsterape] 24/12/2008 04:02

If you wanted to buy Lloyds anyway then, yes, you get a
discount by buying HBOS instead, but Lloyds may well drop
to the HBOS-equivalent price on conversion day, so you
might not necessarily be any better off than if you'd waited.

The smart thing was to do the arbitrage trade of buying
1 unit of HBOS and selling 0.605 units of Lloyds and hold
for the difference to erode. With the short-selling ban the
short side may have needed to be simulated, perhaps.

But there was as much as (I think) 50p in that trade at
one point

[chrysippus] 24/12/2008 01:38

I think I'm missing something...

If I buy £3k of HBOS @ around 65p I get around 4500 shares.

On Jan 19 (or so) I then get 4500 x 0.605 = 2722 LLOY group shares

If LLOY holds its 1.25 from today, my holding then worth 2722 x 1.25 = 3402

So, if I think LLOY will at least hold from here, I should buy HBOS? What could argue against this?

Sorry if this seems very obvious and I'm being a bit thick... I have trawled the BBs here and at LLOY and read the merger documents from each corporate website and this is how it looks, have I misunderstood it?

Thanks in anticipation... and happy Christmas all

C