Hedge funds push HBOS below rights price
Shares in UK bank HBOS closed below their rights issue price of 275p for the first time on Monday. It emerged that US hedge fund Harbinger Capital holds 3.3% of HBOS shares in a £345m short position. UK funds Lansdowne Partners and Meditor Capital Management each held short positions of less than 1%. The shares gained 1.94% on Tuesday to close slightly above 275p. HBOS will ask its shareholders to approve its £4bn rights issue in an extraordinary general meeting on Thursday. Dresdner Bank and Morgan Stanley are underwriting the offer.
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