Union to raise pounds 11m in rights issue

UNION, the financial services group formerly known as Union Discount, is raising pounds 11m from shareholders to ease capital constraints on its money-market operations and help to boost a range of recently launched businesses, writes John Willcock.

Two weeks ago Union announced that it had returned to profit, and paid its first dividend since 1991, after putting a series of leasing disasters behind it.

Union is holding a two-for-five rights issue of up to 7.6 million new shares at 150p per share, underwritten by Schroders. Cazenove is the broker.

Union's shares fell 6p to 176p yesterday on the news.

George Blunden, chairman of Union, said: 'We see this as the final move in the rebirth of Union.' He said the core discount house had a superb client list but needed more capital to develop.