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London open: £37bn banks refinancing lifts Footsie
Wed, 19 Nov, 2008
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London open: £37bn banks refinancing lifts Footsie
Mon, 13 Oct 2008, 08:39:00
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Related Market Prices
Name
Value
Percent
Change
Royal Bank of Scotland Group
42.30p
+1.44%
Barclays
129.60p
-13.31%
Capita Group
634.00p
-0.00%
HBOS
64.30p
+2.06%
Lloyds TSB Group
118.50p
-9.68%
Premier Foods
25.25p
-9.82%
QinetiQ Group
146.00p
+1.04%
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London has opened stronger following details of the £37bn fund raising plans from three of the country's largest banks.
Royal Bank of Scotland
chief executive Fred Goodwin has stepped down as the group asked the government for £20bn to bail it out of its financial hole. RBS is to offer £15bn worth of new shares at 65.5p to be underwritten by HM Treasury. In addition, the government will subscribe for £5bn of Preference Shares.
Lloyds TSB
is up after it revised terms for its merger with HBOS. It will also raise £5.5bn of new capital, with
HBOS
raising a further £11.5bn. The bank, which had offered 0.833 of its shares for each HBOS share, is now only prepared to offer 0.605 of its shares for each share in the Halifax-owner. HBOS is recommending the lower offer.
Barclays
has unveiled plans to raise £6.5bn from shareholders and other investors without the need of government help, with a further £3.5bn to come from a dividend cut and other sources.
Elsewhere, Hovis bread and Branston pickle group
Premier Foods
has confirmed speculation in the press that it is looking at ways of speeding up the reduction of group debt.
Outsource giant
Capita
Group has paid £13.6m, net of cash acquired, for IP based business networking solutions firm ABS Network Solutions. "The acquisition will add valuable new expertise and capacity to Capita IT Services' existing networks business," said the UK blue chip.
Defence and security firm
QinetiQ
is to acquire tender assessment and management software group Commerce Decisions for a total of £9.85m. The acquisitions of the Oxford-based company will strengthen Qinetiq's consultancy business, QinetiQ said.
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