It cites Liberty's "increasing awareness and scrutiny of all large financial guarantee transactions born of 'irregular' underwriting issues".
Andrew Davidson, a structured-finance consultant, suggests an "origination certificate", guaranteeing the quality of the underwriting, issued by the lender and broker, which stays with the loan.
The brokers themselves have to wait to see how many shares they will be allocated from one of the leading investment companies underwriting the issue.
The Union of Fans released a statement raising their concerns about the possibility of Mike Ashley, the owner of Newcastle United, underwriting the issue and so increasing the size of the near 5% stake he already holds in Rangers International Football Club.
Underwriting the issue is by no means an easy task for lead investment banker, Salomon Smith Barney, given the current aversion investors have for the disk drive sector, which is dominated by the big U.S.-based disk drive makers Seagate Technology (SEG), Quantum (QNTM) and Western Digital Corp. WDC ).
Several New York counties, operating a pool to cut administrative and underwriting costs, issued similar bonds for $117.1 million last December, and in March, the State of South Carolina issued bonds for $934.5 million.
The government is also prepared to underwrite the issue of further shares, and both Allied Irish and Bank of Ireland have "indicated an interest" in the underwriting of up to 1 billion euros each, according to the statement.
That day, Morgan Stanley and J. P. Morgan confirmed that they would underwrite the issue.
They had already been "spun"—given, if you prefer to favoured clients of the investment bankers underwriting the issues.
If Bradford & Bingley is any indication, investment banks will have grown more cautious about underwriting rights issues.
