HBOS hit top spot on the FTSE 100 yesterday after months of difficulties. The recovery was assisted by rumours of an asset sale, with the bank said to be close to selling its BankWest subsidiary in Australia. HBOS has sought to increase its Equity Tier 1 ratio by as much as 100 basis points since its share price was severely damaged by a rogue trader in March. As a result of the speculation, HBOS’ share price rose by almost 7 per cent.
At the close of the FTSE yesterday, HBOS’ share price stood at 279.25p, significantly higher than the 275p per share currently offered in the bank’s £4 billion rights issue, being issued in an attempted to redress problems on its balance sheet.
It is estimated that the £2 billion income from the potential sale of HBOS Australia, which includes BankWest, would generate an improvement of 30-40 basis points for the bank.
It wasn’t just HBOS who enjoyed a good day on the FTSE, however, with the market up by 50.3 points at the close to 5,476.6. Standard Chartered was the other big mover, rising 51p to 1,446p.
HBOS Boosted by Rumours of Asset Sale
HBOS Boosted by Rumours of Asset Sale
Fri, 04 Jul 2008
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