"Lloyds Banking climbs after Sir Victor Blank confirmed that he is planning to step down as chairman of the group by the AGM in 2010 following continuing criticism of his banks ill-fated purchas e of rival HBOS.

In a separate statement, the bank confirmed that it has agreed with HM Treasury to launch the previously announced placing and open offer on 20 May. The proceeds will be used to redeem the 4bn of preference shares held by HMT. In a change to the terms previously indicated, existing Lloyds shareholders who decline to take up their open offer entitlement will now receive a share of any profits from the sale of unsubscribed shares.

Any proceeds raised in the rump placing in excess of the 38.43 pence open offer price will be distributed on a pro rata basis to those shareholders who did not participate in the placing and open offer, Lloyds said."

Who said lloyds were finished, look at it climb today. :))

From the TELEGRAPH ........

Should you take up the Lloyds Banking Group share offer?

Should Lloyds Banking Group's 2.8m shareholders take up its offer to buy discounted shares in the group?

The Telegraph's Questor

"Recently, Questor has stayed away from making investment recommendations in the banking sector. Questor is an investor and bets on the banking sector are too much like gambling than investing. There simply is not enough information in the public domain about the quality of their balance sheets to make an informed decision.

"Questor prefers a conservative investment strategy and so has avoiding taking positions in the banking and retail sector. However, Questor appreciates that there are many investors holding shares in Lloyds Banking Group.

"The offer is open to shareholders who bought shares in the group before close of business today. Investors wishing to participate in the share issue can therefore take a position today that will allow them to take part in the share issue.

"Questor does not advise investors to do this, feeling that there are too many uncertainties regarding ex-HBOS assets. Indeed, the bank expects bad debts provisions on corporate loans will jump 50pc this year compared with 2008.

"Under the terms of the share placing, existing shareholders will be able to subscribe for 0.6213 new shares for every share they currently own. The new shares will be priced at 38.43p, which represents a 57pc discount to Friday's closing price.

"The changes in the deal unveiled yesterday are as follows. Firstly, shareholders will no longer be allowed to subscribe for extra shares above and beyond their allocation. This is simple and straightforward.

"The second change is more important. Any investor who does nothing will have their allocation of shares sold in the market at the prevailing market place and the funds will be returned to them minus expenses. Money will only be returned to shareholders if the sale price is in excess of 38.43p, the amount shareholders could pay for the rights.

"Questor thinks investors should do nothing and await the cash to be returned to them after the deal has gone through. Taking up your rights would mean increasing your exposure to the group at a time when the shares have bounced around 140pc from their March low.

"Of course, many investors will be cautious and chose to "do nothing". This means there is the possibility that a flood of shares will have to be sold in this so-called "rump placing" of shares that have not been taken up. This could hit the share price hard following this corporate action. However, Questor feels it is unlikely that this will force the share price down to 38.43p.

"Doing nothing and not taking up your allocation means that you still have an exposure to the long-term future of the bank, but you have also extracted some cash from your shareholding. Consider it as a hedge against bad news from toxic assets that may take everyone by surprise in the future.

"Of course, shareholders are going to have to vote on the deal, which is expected to take place in June. Questor has an avoid stance on the shares."

Nick Raynor, The Share Centre
"Shareholders will have to look at taking up this offer, otherwise all of their shareholdings will be diluted. Plus it also gives those who bought at higher levels the opportunity to bring their average buying price down.

"That said, investors should only take this up if they can afford to tie up this money for a long period of time, as there could be further skeletons to emerge that we're not yet aware of."

Nic Clarke, analyst at Charles Stanley
"The share price is up today which is most likely due to the fact that the offer price was not increased. However, we take the view that there will not be huge demand for the shares as the company has significant problems on an operating level, which were highlighted in the recent trading update on 7 May. On balance, our recommendation remains Hold but we shall be looking closely at where the share price settles after the offer goes ex on 20 May."

Richard Hunter, Hargreaves Lansdown
"The offer is likely to be eclipsed by the announcement of the departure of the chairman, Sir Victor Blank. In the meantime, the confirmation of the open offer has taken on a new dimension since March, from which time the share price has risen over 120pc. The outcome of the shares on offer means that investors with any semblance of loyalty towards their holdings will have a simple decision to take, with an offer price of 38.43p per share, and the current price in excess of 90p.

"In terms of general market consensus, the shares remain a sell, although there could be some revision to these opinions given the change of management. Concerns also remain around the combined group's high exposure to the UK market and its economic prospects."

I feel LLOY could go down to 50-60p after the placing...very big gamble.

hlyeo98

re - I feel LLOY could go down to 50-60p after the placing...very big gamble.

It seems you have not much idea let say, so sometimes is better keep you mouth SHUT, or otherwise ask the question instead of answering it.

I have not look yet to the above post.

Any share with such a dilution over 50% to be precise 62.13% and a such discounted price 38.43p will have to move down once it goes X.

at todays prices 102p that will mean the shares should go to 77.59p when it goes X placing

EXAMPLE
one have
1000 share @ 102 = 1020
entitlement
621.3 shares @ 38.43p = 238

total 1621.3 shares cost 1258

1258 : 1621.3 shares = 77.59p when going X placing

Hlyeo,

Don't make the usual mistake.

Autonomy issued shares at 250 when it was 450 a share. Everybody said it will fall to 130, I thought it can go down to 400 at most and sold mine at 450 with a bit of loss when my target was 600 within a year. It did not go to 400 and I missed it, but it rose to 900 in the year.
It is around 1500 two years after the issue.

Lloyds and Halifax xombined can be 500 again, if we recover and we will.
The situation is like when BGY was 5p (now over 800) and ISYS which was 6p (now 25p) and everyone was bearish

MAY was sold at 86p, but the share rose to 200p on the last few days. REASON: shorts had to close their positions!!! hehehe

Guys, don't be over-optimistic.

Autonomy is a profit-making company. LLOY is full of bad toxic debt and it may not revive.
Moreover UK economy is looking as bad as today's weather - confirmed in deflation now as announced today.

lloys to give update before agm to say that things are starting to get a lot better.

Looks like people have just started realising this goes X Marker tomorrow. Can see it getting a right battering tomorrow, bringing the other banks down with it.

Well, sometimes things do get over the Master's head when the shit hits the fan. LMAO.

All these banks shares are far to volatile at the minute - there up and down like a Brides Nighty, Its O.K if you fancy day trading but I'm leaving well alone. 80p tomorrow at this rate ---- Scary stuff !!

When Tories come to power, Lloyds Banking Group will be demerged by George Osborne. This is not a nice sight for LLOY.

I have this nightmare that Brown will hang on in power until the last possible minute, by which time many thousands of jobs will have been quietly lost in Lloyds/HBOS, 2009 will have been used to clear out any final large corporate loan rubbish and it will be clearly demonstrable that the ongoing Lloyds Banking Group will make a great deal of money from "basic" banking. In the run up to election day, Brown will then release plans to sell the government stake at a profit and find himself re-electable. As a long term holder in LLoyds, currently at significant loss, I may be biased a bit, but I believe they will become extremely profitable in other than the short term.

More likely Lloyds will sell/dispose of parts of HBOS which don't contribute to the synergy of its core business.

Director Deals - Lloyds Banking Group PLC (LLOY)

Timothy Ryan, Non Executive Director bought 20,000 shares in the company on the 19th May 2009 at a price of 94.60p.

NOTE: Purchased jointly with wife

hlyeo98 -

re - shit hits the fan



Are you running for cover or just tissing?
shit is going to be found on trying hole 19

Especially if made by " hlyeo98 " had -its - fingers burn at some stage, so "sour grapes" must be the case for the outburst now.

LLOY 100.30p

OPENING PRICE for tomorrow after going X - placing?

As the price finished about 3p lower than earlier calculation below is the new opening price for tomorrow morning, provided - WALL STREET - does not move to wildly to any side.

At todays closing price UT 100.30p (spread 99 / 99.20p ) that will mean the shares should open tomorrow morning at 76.54p - X placing

EXAMPLE
one have
1000 share @ 100.3 = 1003
entitlement
621.3 shares @ 38.43p = 238

total 1621.3 shares cost 1258

1241 : 1621.3 shares = 76.54p when going X placing

lol at master RSI......however, i have to agree your comments re hyleo.....he also got another major company totally wrong in last couple of months and hasnt been back on that thread since......he just appears when share price goes down a lot.

hyleo is sort of person that would rob a guy lying on the street after someone else has beaten them up.

Lloyds trails rival banks as analysts weigh in

By Nikhil Kumar
Wednesday, 20 May 2009

Lloyds Banking Group lagged behind its UK-focused peers last night, as brokers analysed the potential implications of the bank's plans to redeem Government-owned preference shares. Like other lenders, Lloyds has been on an upward trend, with its shares climbing by more than 40 per cent since the beginning of last month. But the tide may turn, if analysts at SociGale are correct.
The broker, which maintains a "sell" rating on the bank's stock, said the completion of the placing and open offer was likely to mark the removal of the "final potential positive catalyst" for investors. Following the transaction (the new shares are likely to begin trading in mid-to-late June, according to the broker's estimates), the fundamentals are likely to hog the spotlight ahead of the bank's half-yearly results in August, which SocGen warns may be disappointing, both on account of revenue momentum and bad debt impairments.

Separately, Exane BNP Paribas said the terms of the transaction discounted the potential for windfall gains for institutional investors. The key here is the removal of the excess application facility. When the open offer was first announced in March, there were no plans for a rump placing and any unsubscribed new shares were to be made available through the facility, Exane pointed out yesterday.

Some retail shareholders were expected to miss out on their rights, despite the compelling economics caused by the recent strength in the Lloyds share price, leaving extra stock for institutional investors, who were expected to pick up the leftovers by tapping into the facility. "Cancellation of the [facility] removes the source of windfall gains," the broker said, labelling the revised terms a disappointment for those who were hoping to accrue gains at the expense of passive investors.