INDUSTRY NEWS

HBOS shares rally after Spanish interest chatter

Shares in lender, HBOS have risen following talk on the markets of interest from Spanish firm, BBVA, it has been reported.

The lender had seen its shares fall in value and become less attractive to buyers in its ongoing rights issue.

Offered at 275 pence, when their value was 500 pence, they were initially seen as good value. However, the company’s share price had dropped before today’s 10.6 per cent rally to 288.8 pence.

“There is a suggestion BBVA may be looking at HBOS,” Reuters reported one trader said – it noted several traders have also quoted the rumour of BBVA interest.

London markets have mirrored those in the US and witnessed the fall of some mortgage lenders tied up in commercial property and residential sales.

Northern Rock collapsed from its over-exposure to sub-prime lending and sent shockwaves across UK markets.

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