Cattles has become the latest UK lender to seek cash from its shareholders, with the subprime loans specialist set to unveil plans today to raise about £210m. Financial Times
The terms of the cash call were still being finalised last night. However, people close to the plans believe it would take the form of a nine-for-20 rights issue at 128p a share underwritten by Citigroup and HSBC.
Shares in Cattles closed 11.2p, or 4.9%, lower at 219.5p last night, after rumours of the fund-raising started to leak into the market. Cattles, which has a market value of £800m, declined to comment.
While other banks have in recent weeks launched rights issues to shore up their balance sheets, a person familiar with the situation dismissed suggestions that the company was suffering from a liquidity problem.