25-03-2008
HBOS moves to support share price
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Staff and senior members of management at Halifax Bank of Scotland (HBOS) have purchased a large number of shares, following a steep decline in the value of stock last week.
According to reports, the HBOS employees have collectively purchased shares worth in excess of £6 million, on the back of "malicious rumours".
"This is a very straight-forward demonstration of the very high confidence our senior management has in HBOS," said a representative from HBOS. "This sort of thing is exactly what the City wants to see and this is the best answer to those people who spread false and malicious rumours."
In one single purchase, HBOS chief executive Andy Hornby bought shares worth a total of £414,000. The share purchase follows a decline of up to 17 per cent during trading on March 19th.
Specifically, the rumours sought to suggest that the company was suffering a crisis similar to that faced by Northern Rock. HBOS was established in 2001, following the merger of Halifax and the Bank of Scotland.
