Halifax Bank of Scotland to ask for extra funds
April 28, 2008
Halifax Bank of Scotland (HBOS) is considering a rights issue of up to £4bn.
HBOS is the UK’s biggest mortgage lender. The directors are due to meet this week for the banks annual general meeting and it is thought this when they shall discuss the share issue plan.
The bank has 2.1 million shareholders because of the Halifax demutalisation in 1997. The Halifax then merged with Royal Bank of Scotland to form HBOS in 2001.
After Royal Bank of Scotland announced its right issue of a record breaking £12bn, many analysts have been expecting more banks to follow RBS’s lead.
It is feared HBOS will have to mark down the value of its investment that have been hit by the global credit crunch by up to £3bn. The banks shares are worth less than half the value that they were trading at last June.
www.halifax.co.uk
www.rbs.co.uk
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