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.’
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