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Lloyds shares rise as rights issue is priced

24 November 2009 / by Rebecca Sargent

Shares in Lloyds Banking Group rose this morning as the group revealed the pricing for its record rights issue.

The £13.5billion rights issue intends to sell 36.5billion new shares at the discounted price of 37p – almost 60 per cent less than their current value of almost 93p.

The capital raising is part of the latest initiatives launched by the troubled banking group, which has allowed the bank to escape the Government's asset protection scheme and avoid further taxpayer ownership.

The Group has also made a recent restructuring announcement, which will see thousands of further job losses at the group, in addition to the 10,000 that have already taken place.

In fact, just yesterday the Group revealed a further 800 job losses in Aylesbury, Buckinghamshire as a result of plans by Equitable Life to end its contract for the provision of administration services with Lloyds Banking Group.

Commenting, Ged Nichols, general secretary of Accord said: "Today's announcements are a body-blow for the workforce and for Aylesbury particularly as the Lloyds Banking Group is the largest private sector employer in the town."

Further job cuts are expected at Lloyds Banking Group over the next 12 months.

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