(LLOY.L) Lloyds Banking Group PLC Buy/Sell

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Author	poor_teacher View Profile \| Add to favourites \| Ignore
Date posted	2009-11-03 22:42
Subject	Re: I've done the maths if interested View parent message
Votes for this Posting	Voted 1 time. Voted 2 times.
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My point being...I feel your original statement, in part, is misleading. I agree the RI ratio and new issue price will be related to the share price. However, I disagree with your idea of exact ratios to price. Just because the price closes @ 83p on 20th November (hypothetically) does not mean a ratio of 1:1 at 40% discount. Why not 2:1 at 80%?? would then be attractive price for long term investor and encourage take up. Unless I have missed something the ratio to price has almost infinite possibilities, until after 20th Nov, as long as 13.5billion is raised and no more than 90 billion shares issued. The reduction in ordinary share nominal value is as you suggest, gives the board more head room to ensure a 38-40% discount to the theoretical price, just in case the share price tanks between now and the 20th I would assume. GL Sniffer Dave Pt
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