HBOS to follow RBS April 28th, 2008

HBOS is expected to follow in the footsteps of RBS and turn to its shareholders for extra funds in a move to shore up its balance sheet. The nnouncement of the rights issue is due on Tuesday and it is thought  it will be in the region of £4bn, some way off the £12bn requested by RBS.

Following the demutualisation of the Halifax, now part of HBOS, the company has the broadest base of shareholders of all banks with some 2.1m owners. Consequently, it shouldn’t be difficult to raise the funds required. HBOS share price ended the day down a relatively small 1.25 points at 495.75p