Trading at 91.38p +3.20p

best of the day

Lloyds axes 800 jobs on Equitable contract loss

The latest cull at the bank, which is 43 per cent owned by the British taxpayer, comes at its offices in Aylesbury, Buckinghamshire, following the loss of a key contract with Equitable Life, the mutual life insurer.

The cuts, described by unions as a "body blow", come on top of a total 12,500 jobs already axed since the bank was created by the takeover of HBOS by Lloyds TBS in January and will be particularly felt in Aylesbury, where Lloyds is the biggest private sector employer.

i hope im in for a earner fellows bin sittin on 24000 of them for a year now

Rights Issue Price Announcement (Lloyds)

Lloyds Prices Rights Issue At 37p/Share To Raise GBP13.5 Billion





By Patricia Kowsmann
Of DOW JONES NEWSWIRES

LONDON -(Dow Jones)- Lloyds Banking Group PLC (LYG) Tuesday priced the largest-ever rights issue at 37 a share, a 60% discount from Monday's closing price.

The U.K. bank will offer 1.34 rights share for every one existing share in an effort to raise GBP13.5 billion, it said in a statement.

The rights offer is part of a plan announced last month to raise GBP22.5 billion in fresh capital, including through the conversion of debt, as the bank tries to avoid an expensive insurance scheme that would otherwise see the government increasing its stake in Lloyds to over 60% from 43% currently.

The U.K. bank said the figure was at a 38.6% discount to the theoretical ex-rights price, the bottom of the 38% to 42% range previously given. TERP is the calculated price for shares after issue of new stock.

The offer is subject to shareholders approval Thursday in Birmingham.

The U.K. government said it will take up its part in the issue, which is also fully underwritten.

The new shares will represent 57% of Lloyds' share capital, the bank added.

-By Patricia Kowsmann, Dow Jones Newswires. Tel +44(0)207-842-9295, patricia.kowsmann@dowjones.com

So have I got this right? I'm already entitled to my 1.34 per share as the record date is past. Right now I can sell them all at around 92p and use the proceeds to buy the rights issue @ 37p after which I will own 1.34 times more shares than now plus a lump of cash to eventually buy more at the ex rights price.

Sounds too good to be true.

RIGHTS ISSUE STATISTICS

+--------------------------------------------------------------+--------------------+
| Issue Price per New Share | 37 pence |
+--------------------------------------------------------------+--------------------+
| Discount of Issue Price to the Closing Price on 23 November | 59.5 per cent. |
| 2009 (being the last practicable date before the publication | |
| of this announcement) | |
+--------------------------------------------------------------+--------------------+
| Discount of Issue Price to theoretical ex-rights price based | 38.6 per cent. |
| on the Closing Price on 23 November 2009 | |
+--------------------------------------------------------------+--------------------+
| Basis of Rights Issue | 1.34 New Shares | for every 1 | Existing Ordinary | Share |
+--------------------------------------------------------------+--------------------+
| Number of Ordinary Shares in issue as at the date of this | 27,161,682,366 |
| announcement | |
+--------------------------------------------------------------+--------------------+
| Number of Ordinary Shares to be issued by Lloyds Banking | 36,505,088,579 |
| Group pursuant to the Rights Issue | |
+--------------------------------------------------------------+--------------------+
| New Shares as a percentage of Actual Enlarged Share Capital | 57.3 per cent. |
| of Lloyds Banking Group immediately following completion of | |
| the Rights Issue(1) and Share Subdivision | |
+--------------------------------------------------------------+--------------------+
| Expected gross proceeds of the Rights Issue receivable by | GBP13,506,882,774 |
| Lloyds Banking Group | |
+--------------------------------------------------------------+--------------------+
(1) On the assumption that no further Ordinary Shares are issued as a result of
the exercise of any options under any Lloyds Banking Group Employee Share Plans
between the date of this announcement and the closing of the Rights Issue.

EXPECTED TIMETABLE OF PRINCIPAL EVENTS
+--------------------------------------------------------------+-------------------+
| Record Date for entitlement under the Rights Issue for | Close of business |
| Qualifying CREST Shareholders and Qualifying Non-CREST | on 20 November |
| Shareholders and for holders of Limited Voting Shares for | 2009 |
| the LVS Capitalisation Issue | |
+--------------------------------------------------------------+-------------------+
| Announcement of Issue Price and entitlements of Qualifying | 7.00 a.m. on 24 |
| Shareholders | November 2009 |
+--------------------------------------------------------------+-------------------+
| Latest time and date for receipt of Forms of Proxy for the | 11.00 a.m. on 24 |
| General Meeting | November 2009 |
+--------------------------------------------------------------+-------------------+
| General Meeting | 11.00 a.m. on 26 | November 2009 |
+--------------------------------------------------------------+-------------------+
| LVS Record Date for entitlement under the Rights Issue for | 4.30 p.m. on 26 |
| Qualifying LV Shareholders | November 2009 |
+--------------------------------------------------------------+-------------------+
| Share Subdivision becomes effective | Close of business | on 26 November |
2009 |
+--------------------------------------------------------------+-------------------+
| Despatch of Provisional Allotment Letters (to Qualifying | 26 November 2009 |
| Non-CREST Shareholders only) | |
+--------------------------------------------------------------+-------------------+
| Start of subscription period | 26 November 2009 |
+--------------------------------------------------------------+-------------------+
| Admission | 8.00 a.m. on 27 | November 2009 |
+--------------------------------------------------------------+-------------------+
| Dealings in New Shares, nil paid, commence on the London | 8.00 a.m. on 27 |
| Stock Exchange | November 2009 |
+--------------------------------------------------------------+-------------------+
| Existing Ordinary Shares marked "ex-rights" by the London | 8.00 a.m. on 27 | November 2009 |
+--------------------------------------------------------------+-------------------+
| Nil Paid Rights credited to stock accounts in CREST | 8.00 a.m. on 27 |
| (Qualifying CREST Shareholders only) | November 2009 |
+--------------------------------------------------------------+-------------------+
| Nil Paid Rights and Fully Paid Rights enabled in CREST | 8.00 a.m. on 27 |
| | November 2009 |
+--------------------------------------------------------------+-------------------+
| Recommended latest time for requesting withdrawal of Nil | 3.00 p.m. on 4 |
| Paid Rights and Fully Paid Rights from CREST (i.e. if your | December 2009 |
| Nil Paid Rights and Fully Paid Rights are in CREST and you | |
| wish to convert them to certificated form) | |
+--------------------------------------------------------------+-------------------+
| Latest time for depositing renounced Provisional Allotment | 3.00 p.m. on 8 |
| Letters, nil or fully paid, into CREST or for | December 2009 |
| dematerialising Nil Paid Rights or Fully Paid Rights into a | |
| CREST stock account (i.e. if your Nil Paid Rights and Fully | |
| Paid Rights are represented by a Provisional Allotment | |
| Letter and you wish to convert them to uncertificated form) | |
+--------------------------------------------------------------+-------------------+
| Latest time and date for splitting Provisional Allotment | 3.00 p.m. on 9 |
| Letters, nil or fully paid | December 2009 |
+--------------------------------------------------------------+-------------------+
| Latest time and date for acceptance, payment in full and | 11.00 a.m. on 11 |
| registration or renunciation of Provisional Allotment | December 2009 |
| Letters | |
+--------------------------------------------------------------+-------------------+
| Dealings in New Shares, fully paid, commence on the London | 8.00 a.m. on 14 |
| Stock Exchange | December 2009 |
+--------------------------------------------------------------+-------------------+
| New Shares credited to CREST accounts | by 14 December |
| | 2009 |
+--------------------------------------------------------------+-------------------+
| Despatch of definitive share certificates for the New Shares | by 29 December 2009
| in certificated form |
+--------------------------------------------------------------+-------------------+

You wish Kernow! Share sub division doesn't become effective until close of trading on the 26th Nov, so that is the date you want to watch.

kernow

re -So have I got this right? I'm already entitled to my 1.34 per share as the record date is past

Announcement of Issue Price and entitlements of Qualifying Shareholders 7.00 a.m. on 24 November 2009

The Qualifying date at 7.00 am ( this morning is the important date) . The record date is for the registrars paper work.

kernow

re -So have I got this right? I'm already entitled to my 1.34 per share as the record date is past

you will not be able to get the intitelment till it goes Ex - date , and that is the day after the AGM


Once Dealings in New Shares, nil paid, commence on 8.00 a.m. on 27 November 2009 ........... then you can sell, if you need to raise money to buy the R I @ 37p

OK guys - thank you.

any thoughts on lloyds share price after the x rights? with this amount of shares it could drop to 40pence ish ?

Yeah .... and it may not.

Broker comment (WestLB) this morning:
"We change our rating on Lloyds Banking Group (LBG) from Neutral to Add,
and set our target price at 105p (cum-rights). We have revised our estimates
following the announcement of the new restructuring plan, the rights issue
and the Q3 interim management statement (IMS) on 3 November. We have
now also taken into account the rights price of 37p announced this morning.
LBGs share price has underperformed the sector by c.20% since the end of
August. We believe that a significant layer of uncertainty has been removed
now that the rights price and the nature of the EC restructuring plan are
known. Nevertheless we acknowledge that certain risks remain, especially for
banks undergoing an EC restructuring plan, and in which the government
owns a significant stake. We therefore set our target price at a 10% discount
to the intrinsic value (IV). As the 105p target price is more than 10% above the
current share price, we change our rating from Neutral to Add."

ex rights sp will be around 62p at current 94p

i have lloyds shares will i be able to sell the right to the new shares , without actually buying them ?

If you don't take up your Rights, they (your allocation) will be sold on the open market on your behalf & you will receive any profit made (less charges).

it seems if the ex rights price is about 62p i dont have alot to gain in buying the rights. i may as well sell tomorrow at 94p and take my 75%+ gain for the last 6 months i have had the shares.

Imo, depends how long you are planning to be invested in LLOY.
If you are trading the stock, maybe best to take profit. If you are happy to buy more shares at 37p but see a dilution to your original holding & hold for better times, then that's another option.
62p is just a notional figure. What happens if the sp surges ahead? No easy answer to your question.

re - What happens if the sp surges ahead? No easy answer to your question.

From the FT.com .........
MARKET REPORT

Banks led the way lower, with Royal Bank of Scotland down 4 per cent to 36p and HSBC sliding 1.9 per cent to 737p.

But Lloyds Banking Group took on 2.6 per cent to 93p after pricing its 13.5bn rights issueat 37p, towards the top end of its indicative range.

Analysts saw potential further gains once Lloyds trades ex-rights on Friday, as index reweightings force tracker funds to buy.