HBOS shares are likely to fall as a result, however it doesn’t mean it won’t get the money. The share issue was underwritten by Morgan Stanley and Dresdner who will now own more than 90% of the new shares.
The bank’s main problem was falling share prices as shareholders could buy shares on the open market at a cheaper rate than the rate offered in the issue. RBS managed to raise £12 billion, whilst Barclays raised £4.5 billion.
