ADVISERS to FirstGroup were busy trying to drum up support for the transport company’s shares yesterday, ahead of the closing of the company’s £600m rights issue next week.
As things stand there is a growing possibility that some of the issue will be left with the underwriters. The issue is fully underwritten.
Yesterday’s fall has left the share price just 7p ahead of the 85p rights price, whereas bankers had expected it to hover around 100p.
Sentiment was not helped yesterday by a note from UBS saying there was “limited confidence in management targets.”
Nomura has been more favourable, preferring FirstGroup to its rival National Express.