It is expected that the issue could be on a one-for-two basis at around 140p, raising about pounds 120m. But the City may find that a bit strong after a year that has seen a board shake-up, a profit warning and a ticking- off from the Stock Exchange.
Paul Woodhouse, at Smith New Court, pointsout that LIG will have to cut its dividend, possibly by half, and even that will not be covered by dismal profit figures. Putting the shares on a market yield, they would be worth only pounds 1 compared with a close of 170p on Friday. Sell.Reuse content