UK Finance News » Personal Shares

UK Finance:Northern Rock investors lose appeal

John Williams — Tue, 28 Jul 2009 16:57:56 +0000

Former Northern Rock shareholders aiming to win back the losses they made when the bank was taken over by the government have seen their demand for compensation dismissed at the London Court of Appeal.

The shareholders and two hedge funds had argued that the government compensation offered at the time, had undervalued their shares, and breached their human rights.

In February the High Court had ruled against the shareholders, rejecting a demand for a judicial review of the scheme and yesterday the appeal court agreed and upheld the ruling.

But Jon Wood, spokesman for SRM Global said the investors would continue their fight.

“We are encouraged that the Court of Appeal’s judgment acknowledges the real force of our arguments. We embarked upon this legal challenge in the full expectation that it would be a lengthy process. We are determined to see it through to its conclusion,” he said in a statement.

HBOS Rights Issue Flop

John Williams — Mon, 21 Jul 2008 13:30:11 +0000

Reports in this weekends press suggest that only around 10% of HBOS shareholders participated in the banks rights issue to raise £4billion.

Experts are concerned that the take up may be so bad that it will leave underwriters Morgan Stanley & Dresdner with as much as £3.6bn worth of the banks stock.

HBOS had hoped to rally support from it’s estimated 800,000 small private investors who were given around 200 shares each following the demutualisation of Halifax Building Society ten years ago.

While the offer made by HBOS may have looked attractive when it was announced in April, since then the share price has plunged in value. The hammering taken last week as UK banks in general were hit on the stock exchange, saw HBOS share drop to a low of 228p against the original discounted rights issue price of 275p.

The next few days could be crucial for the bank and it will be interesting to see how experts Morgan Stanley & Dresdner emerge from the farce.

HBOS Rights Issue Not Worth The Paper It Is Written On

John Williams — Thu, 03 Jul 2008 16:22:02 +0000

Good advice from The Daily Mail This Is Money section, for the 1.4 million of us who hold shares in HBOS, a document outlining the companies rights issue should now be in your possession.

Put it through the shredder is the advice being given and should not even be a consideration. HBOS share price on 1st July was 6p lower than the 275p being asked for the new rights issue, so really there is no point in buying.

Giving the current economic climate it is unlikely that the HBOS share price will rise dramatically before 11th July the D day for the rights issue, if it were to improve then the advice could very well change.

But being realistic, Stockbroker Justin Urquhart Stewart, of Seven Investment Management, says: ‘Don’t even think about participating in this rights issue. If you really want to buy HBOS shares, then go to the market and buy them. Leave the merchant banks to pick up the pieces of this issue.’