BARC, priced to go | FT Alphaville:
"You’ve got to admire the audacity of Credit Suisse, Deutsche Bank, BofA Merrill Lynch and Citi: they’ve agreed to underwrite the £5.8bn Barclays rights issue, pitched at 185p on a 1-for-4 basis.
That’s declared to be a 40 per discount to Barc’s closing price on Monday (and a 35 per cent discount to the TERP). But remember that shares in this bank were trading at around 325p last week before clairvoyant chatter about a cash call began to circulate.
Bar a comet strike or similar, there’s just no risk here for the underwriters. Tuesday’s market price told you as much: the shares were down less than 5 per cent."
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