Mortgage lender HBOS may launch rights issue

0 Comments | AFP, April, 2008

LONDON (AFP) — The board of HBOS, Britain's biggest mortgage lender, will meet Monday to discuss a possible multi-billion pound rights issue due to the international credit crunch, media reported Sunday.

The firm, which declined to comment on the reports, will decide whether to raise extra money from investors ahead of its annual shareholder meeting in Glasgow, Scotland and a trading update, both on Tuesday, papers said.

Last week, the Royal Bank of Scotland, Britain's second biggest bank, appealed to shareholders to stump up 12 billion pounds to offset write-downs and its costly acquisition of ABN Amro bank.

HBOS's board will consider trying to raise between two and four billion pounds, the Sunday Times said.

The paper added that it was still...