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HBoS share excess hits market
Approximately £3.6bn of HBoS shares have been made available to the stock market as more than 90 per cent of shares remained unsold in its rights issue.
The UK's biggest mortgage lender announced to the city on Monday that just 8.29 per cent of the additional shares had been snapped up by its existing investors.
As a result the rights issue's underwriters, Morgan Stanley and Dresdner Kleinwort, have marketed the shares themselves.
The news follows the announcement last week that HBoS was set to axe 650 jobs as it streamlined its retail and corporate banking division.
However the lender denied any cuts would be made across its mortgage brands, Intelligence Finance, Bank of Scotland, Halifax, The Mortgage Business and BM Solutions.
The lender also refused to comment on speculation TMB and BM Solutions could merge following the announcement Nigel Payne, managing director of BM Solutions, would also head up TMB.
Commenting on the limited success of the rights issue Alex Murray, group director of mortgages for Thinc Group, said: "At the moment nobody knows how the market is going to pan out. It is a moving feast week by week in terms of the results that are coming out and the surveys that are coming out."
