Lloyds Banking Group has announced plans to sell shares at 37p in the biggest rights issue seen in the UK.
A rights issue is when a company issues new shares offering them exclusively to existing shareholders at a fraction of the listed share price, in this case 59.5% lower than Monday’s closing price.
The share is hoped to raise £13.5bn, which would allow the bank to avoid having to take part in the government’s banking insurance scheme – a protection scheme that many feared could end up being a form of nationalisation by stealth.
Shares in the 43% government owned bank were up 1% in morning trading.
Lloyds, the UK’s biggest mortgage lender, will be issuing a total of 36.5 billion new shares, which is the equivalent to 1.34 new shares for every one that currently exists.
The sheer amount of new shares has caused concerns among shareholders regarding the value of each share after it was suggested that, like quantitative easing in the UK caused the value of the pound to fall, this would result in share value being diluted.
Robert Talbot from Royal London Asset Management said the fate of the group lies with the performance of the UK economy.
“I think it puts them into a much stronger capital position to be able to withstand whatever lies ahead. The crucial question facing the bank over the next two to three years is what happens to the UK economy,” he said.
Lloyds currently has 2.8 million shareholders, together with Britain’s largest number of private investors. A meeting for shareholders will take place in Birmingham on Thursday to approve the plan.
The share will cost the average shareholder £336.67. Existing shareholders are not obliged to new shares but failing to do so would cause their current share value to be diluted.
The rights issue is only one of Lloyds’ plans to raise around £22.5bn in total.
Lloyds currently holds a dominant position in both the personal and markets, offering a range of and , as well as mortgages.
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Newton’s third law puts it this way: For every action there’s an equal and opposite reaction. But the old ’70s soul song says it all much more colorfully: You always have to pay for the fun you’ve had.
No matter what your hobby or pet pastime, there’s always some undesirable aspect that has to be dealt with. If you’re an athlete, you may have to spend the occasional Monday morning icing a pulled muscle. Sports spectators have to deal with hard bleacher seats, cold weather, and possibly obnoxious bellowing from the guy in the next row-unless you catch the game on TV, where you just have to put up with odd camera angles. Or let’s say you like reading: Obsessive readers may end up with slight vision problems-in fact, graduate students in literature are often advised that they should expect (and be checked for) increased nearsightedness with each year of study. Too much TV can induce apathy and is positively correlated with depression and obesity (and with infomercials, a far worse fate). And most everybody enjoys video games, but if you enjoy them too much, you may-there are documented cases of this-incur a repetitive stress injury to your thumb. As for pet owners, well, let’s not even talk about all the poop-scooping that becomes part of your life.
And cigar smokers have their own result of fun to consider. Specifically, the aromatic scent of their favorite cigar may attach to unwelcome places such as clothes. In fact, back when cigar smoking was the universal habit of Victorian gentleman, many of these smokers would maintain a separate outfit to wear when smoking, which would absorb the fumes. (Thus the terms “smoking jacket” and “smoking cap,” which we still use.)
But it’s the effect of a cigar scent settling on breath that some cigar smokers may find troublesome. The considerate cigar smoker is aware of this and plans accordingly. Here are some suggestions to help you pay for the enjoyment you’ve had-without paying too much!
1) Choose good cigars. This may seem like an obvious point, but the better-made the cigar, the less chemical the odor. well-made, hand-rolled, long-filler cigars from a quality cigar outlet or online store.
2) For while you’re smoking: Drink tea, or eat. (Mild-flavored teas are most recommended; as for foodstuffs, consider dark chocolates or other simple, strong-but-not-too-strong tastes.) “Cutting” your cigar with food or drink can help absorb both the aftertaste and the effects on breath.
3) Keep some fresh parsley on hand-or even a parsley plant in your kitchen or living room, or whatever room is nearest to the place where you smoke. This herb has traditionally come recommended for its odor-killing powers.
4) Chew gum. Mint-flavored gums are recommended, the stronger the better.
5) On that note, try chewing raw mint. As with parsley, you can keep it around in its herbal form and chew it undiluted after a cigar. You can also keep strong breath mints on hand.
6) Mouth sprays, as well as mouthwashes specifically intended for cigar smokers, are available commercially, and can be purchased from cigar stores or online cigar retailers. These are highly recommended. They’re made by people who understand. Some of the anti-cigar-breath mouthwashes have the side benefit of clearing away the tar that might otherwise stain your teeth. If these mouthwashes aren’t available, a typical mouthwash and a good tooth-brushing will be a lot better than nothing.
7) To avoid breath problems the next morning after a smoke: After a smoke, never go to bed without eating something. Even if it’s just a tiny, simple snack, it “cuts” the cigar and reduces breath problems while seeming to absorb and clear away the odors in your mouth.
So, to recap: enjoy good cigars. Drink tea or eat while you smoke, or after you smoke. Brush your teeth like Mom said, and use a good mouthwash-perhaps especially a mouthwash intended for cigar smokers. And mint and thyme help too, especially for those days when you have to rush from your smoke to a work meeting or a date.
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If you are like me, I’m constantly finding things to build in my wood shop. Wood working is by far one of the most rewarding hobbies I know of and I can release a weeks worth of stress in one evening in the shop.
And searching the internet you will find a wealth of project plans free to whoever wants to download them. But sometimes there are projects I’m wanting to build that can’t be found over the net. My solution is to create my own plans from whatever research I’ve done on the subject I want to build. One of my professions is that of drafter. A drafter (used to be called draftsman) is someone who draws mechanical and architectural plans professionally, so at least I’m qualified to do the task.
One of the things I wasn’t able to find plans for was a water wheel. I own a farm and wanted to pump water from my spring to the barn without installing an electric pump. So I researched online to get all the facts, decided what size wheel would work in my spring, and started making a prototype drawing. After a few days drawing was able to come up with not only the water wheel but the braces and stand and also the pump frame to mount on the bottom of the stream.
From these drawings I was able to also build cut sheets for each part of the wheel and then start fabricating. Within a day or two I had a functional water wheel. After you build a concept drawing, you can dissect the drawing to come up with all the parts and their dimensions. That’s by far better than using the old trial and error method many attempt in the shop. And the wheel works fantastic by the way.