Investors ignore HBOS rights issue

Lead underwriters Morgan Stanley and Dresdner Kleinwort could now be forced to take up to £3.67bn of HBOS stock onto their books if they cannot find buyers at the 275p per share rights issue price. Further complicating matters, HBOS shares have fallen below the issue level in early trading, down 9.25p (3.28%) to 272.75p. Underwriters have until 4.30pm tomorrow to find takers for the remaining 1.37bn HBOS shares. Barclays announced on Friday its shareholders accepted just 19% of its £4.5bn rights issue, leading foreign investors to take up most of the cash call. IFAonline