|
|
Doubts raised about tenets of underwriting
Summary from multiple countries, from articles in English
|
Senior City figures and institutional investors lined up to denounce the decision by B&B to allow Citigroup and UBS to walk away from their promise to guarantee a critical $300million rights issue on Monday. (article 4)
For the first time in most investors' memory, the tried and tested British system of raising capital through an underwritten rights issue appears to have foundered. (article 5)
For decades, UK companies hoping to raise money by issuing shares at a discount have given existing shareholders rights of first refusal to new shares to avoid holdings being diluted. (article 5)
Companies have paid banks and other financial institutions "underwriting fees" to guarantee to buy the newly-issued stock if these rights are not taken up. (article 5)
Never before, say investors, have the underwriting banks not honoured this commitment even when share prices have fallen below the discounted rights issue price. (article 5)
Rod Kent, the Bradford & Bingley chairman now with executive responsibilities, spent Tuesday locked in meetings at the bank's London offices in Lambs Conduit Street sorting out the turmoil at the UK's biggest buy-to-let lender. (article 2)
The mortgage bank, which has a market capitalisation of $545m, was approached by TPG after launching its controversial $300m rights issue aimed at repairing its battered balance sheet. (article 3)
|
Other summaries about this story:
Event tracking:
Story keywords
|
b&b, Rights, issue, TPG, Underwriting |
Source articles
- Banking & Finance News (business.timesonline.co.uk, 06/05/2008, 397 words)
- B&B’s acting chief pinpoints three priorities (ft.com, 06/03/2008, 634 words)
- TPG buys £179m stake in B&B (ft.com, 06/02/2008, 484 words)
- Bradford & Bingley denounced for damaging City reputation (business.timesonline.co.uk, 06/04/2008, 538 words)
- Doubts raised about tenets of underwriting (ft.com, 06/03/2008, 426 words)
|
|
blaster@cs.columbia.edu
|
