Financial Question

[Greedo]

I've just saw a bit on the news about HBOS/Lloyds TSB and was thinking.

I know HBOS shares were down at 86p yesterday and worth very little considering they were at £11 last year. The question i have though is what happens to those shares now? Do they still exist and what happens to any cash people have tied up.

Just curious!

 

[ChrisKH]

No one knows yet what will happen on merger. If it goes ahead, probably Lloyds will issue their shares in exchange at an agreed conversion rate. My brother is sitting on a huge pile of HBOS shares and options so he is getting a bit nervous.

 

[domtyler]

"Under the terms of the deal, which must be agreed by investors, HBOS shareholders will receive 0.83 Lloyds shares for every HBOS share."

http://news.bbc.co.uk/1/hi/business/7622380.stm

 

[ChrisKH]

So I weren't wrong was I.