Today they have fallen 22% to a new low of 223p ..are they another Marconi..?



The chart looks like one long suicide note.

Cynic - now your sounding as glum as Mitzy, it was obvious the deal would go through - they had no other option, and the deal with Lloyds is the same there is no other option (no white knight) its done and dusted bar the shareholders vote - who holds most of the voting rights to make it go through - THE BANKS - Do agree with above post though could be day traded up and down a bit but its hell of a gamble, but thats the game :-)

Although Looking more likely!

You would be at least brave to short it. It may wobble, but I guess after the USA pass deal, then it will jump to 200p quite quickly. I have a smallish long at the moment.

there is one very important point about which i am unclear ...... is the conversion (whatever the final formula) applicable at the price the bid was floated, or on the day on which it is completed?

The conversion is .83 of Lloyds share price in reality - so it'll be the price on the day the deal goes through, so they are at hell of a bargain. Two main players have said there happy for the deal to go through at the agreed price (.83 Lloyds) at present should be trading round 2.20 mark - the discount wont last too long when people realise that there is no way Lloyds will back down without causing major damage to its own shares. The main holders are the big city boys - they have the majority of voting rights - they wont want the confusion in the marketplace especially at this time - I would have thought Lloyds and Hbos would release a statement clarifying their positions, it would certainly end all speculation.

Also looking over last 2/ 3 days Hbos rising roughly double Lloyds in % terms wont take long to get to the magic number ! Could go down as well but I bet Hbos fall halve what Lloyds do - to get to the magic number. How did that song go ..... .83 is the Magic Number.

If I was a cynic I would say that they are waiting for their mates to buy in at the current price.

I see even Greek Banks are giving a guarantee on all bank deposits - Goron Brown should have done the same, he wouldn't have to be juggling two banks he cold have done without - and saved a few thousand jobs into the bargain

It's only a small amount I know, but the actual conversion rate is 0.833 Lloyds TSB Shares for every 1 HBOS Share. Makes a difference if you hold a shed load of shares I suppose!

I'm hoping they go up so I can buy a shed :-) In Dubai !!!

Hopefully by Friday I know whether I can order a BMW series 1 coupe (black with red leather seats).

so long as it's very old and tatty you should be ok

Dinky or matchbox :-)

Does anyone understand how the combined Bank will affect shareholders?

Currently LLOY is yielding double figures and I understand this will be paid, but later on, payment will be in (joint)shares, presumably this saves cash, but the re-selling by Institutions will suppress the sp each time there is a (share-)Divivend.

However, the problem I have is whether the same dividend will be spread over the (larger) number of shareholders....which wouild represent a fall of maybe 40% - a neat way of lowering the yield without losing face . . . . I hope not.

The reason the Yield (for LLOY) is so high is simply that the sp has fallen so far.
It may be that LLOY is a safe-bank and of better quality than many others . . . . but when combined I suspect this situation might change . . . . so I will want a larger dividend to support the increased Risk ( i.e. when Combined).

How do others see the risk/reward, Before/after . . . . . ?

i see GS has cut HBOS target price to 220 ...... well i could live very happily indeed with that price!

CNBC have just reported that their sources say the deal has been renegotiated to 0.6 from 0.83.

If true then at current LLOY price and if my maths is correct then HBOS = 159p

If that renegotiation was a done deal then I think the market would have reacted by now. HBOS is currently over 10% above 159p

Yes that is what I don't understand. Possibly MM's trying to get more on board before dropping the price?

Don't know frankly...

M&G says backs original Lloyds-HBOS deal
AFX


LONDON, Oct 2 (Reuters) - M&G, a major shareholder in HBOS Plc. and Lloyds TSB said on Thursday it supported the takeover of HBOS by Lloyds under the original terms agreed.

M&G is the second major investor to formally back the deal on the original terms after Standard Life Investments on Wednesday gave its support.

'We support the deal on the terms as announced,' the fund manager said in an email.

M&G is the sixth largest shareholder in both HBOS and Lloyds, according to Thomson Reuters data.

Yes that's why the sp rocketed yesterday.

Not sure what's going on now so certainly not buying in.