SWF Injection Versus Nationalisation: Effects On Capital Raising And Restructuring

In the Market Leader of the October 5 publication, CFW had raised the question 'How Long Before A Rights Issue Flops?'. It now seems that investors may not be willing to play the rights issue game in the case of Lloyds, but this would be because its main investor is the UK government and it is broke… Lloyds brings up the very interesting case of rights issues of companies which have been partially nationalised and their corporate finance outlook is therefore closely tied to public sector finance. In April, Chancellor Alistair Darling forecast that public borrowing would reach a record GBP175bn over

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