Tesco Did Not Ask Thai Critics For Apology Tesco failed to contact three people it is suing for libel to seek an apology, despite claims by the supermarket that all it wants is a retraction.... Read Full Article Giant Write-Down Is Seen For Merrill Merrill Lynch is expected to suffer $15 billion in losses stemming from soured mortgage investments, almost double its original estimate.... Read Full Article Denny Doherty, 66, Mamas And Papas Singer, Dies Denny Doherty was a founding member of the 1960s folk-pop band the Mamas and the Papas.... Read Full Article AT&T Joins Starbucks To Provide Store Wi-Fi Starbucks and AT&T said they would start offering a mix of free and paid wireless Internet service in most of Starbucks’s American shops, beginning this spring.... Read Full Article Indian Separatist Suspects Kill 14 In Northeast A group of migrant workers were gunned down as they slept by suspected separatist rebels in India’s northeast Assam State.... Read Full Article |
Cattles Makes £200m Cash Call For Bank LicenceCattles, the sub-prime and doorstep lender, is raising funds for the second time in just over a year, this time launching a £200 million rights issue to support its application for a banking licence and shore up its balance sheet. Shares in Cattles plunged 7.5 per cent to 236p in early trading after it announced the heavily discounted rights issue, through which investors can buy nine shares for every 20 they hold at 128p each. Only 13 months ago, in March 2007, Cattles raised £133 million through a share placing that the company said was to be used for funding expansion. Cattles said today that the rights issue would provide the group with the appropriate capital strength to support an application to the FSA [Financial Services Authority] for a banking licence. Related Links Cattles raises £133 million to fund growth London Scottish fire sales as losses hit £16m RBS announces record £12bn rights issueCattles hopes that with an FSA banking licence in place it will be able to draw in about £1 billion of retail savings deposits by the end of 2010. To obtain a banking licence the FSA requires a higher level of capital adequacy than Cattles possesses at present. Last year Cattles entered bid talks with London Scottish Bank which, if they had been successful, would have provided Cattles with a banking licence enabling it to take deposits from savers. At present the companys business model is based on making small personal loans to customers with poor credit histories, all sold via a growing branch network and a team of door-to-door salesmen. In total it has about half a million customers. Cattles has funded its growth by borrowing in the wholesale markets or issuing bonds. These markets, however, worsened significantly in the second half of 2008 because of the impact of the credit crunch, adding that market conditions have deteriorated further in 2008. The company insisted today that this year it was making higher margins on its new lending volumes and impairment and arrears ratios are stable. Tag CloudExternal InformationAdditional InformationInvestors punish BP after poor production...Greenhouse cop to govern businesses... Barclays Shareholders Back ABN Amro Bid... Whirlpool Earnings Up 50 Percent... Where Am I?News Main Page - Business - Cattles Makes £200m Cash Call For Bank Licence |
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