Mortgages - HBOS sell stake in rightmove - 16/05/2008

 
 
  HBOS, Britain’s biggest mortgage lender has sold its remaining 13% stake in property Website operator Rightmove for £59.2 million.

The company which is one of the founding shareholders in Rightmove through its Halifax Estate Agencies unit.

HBOS made a £4 billion cash call last month and further announced that it will cut its dividend as it battles with an increased hit from a deteriorating mortgage market and bad investments.

A spokesman for HBOS, said: "Rightmove was a strategic investment for us and we make disposals from time to time."

Earlier on Friday, Rightmove which runs Britain’s busiest property website, announced the secondary placing of 16.2 million shares via UBS and Numis Securities.

HBOS held 20% of Rightmove when it floated on the London stock market in 2006 and subsequently sold part of its stake in two tranches last year.

The placing has put pressure on Rightmove’s stock which at 12:54 p.m. was down 3.5% at 375 pence. Its shares have dropped 38% over the past year.

Rightmove had previously expressed optimism that it would meet analyst’ expectations for full-year profit but was quick to point out that the future of the housing market was bleak.


 
     
 
 
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