LANCASHIRE COTTON SHARE PLACING
There could be no clearer indication of the broadening of investment demand in the stock markets than the ease with which substantial blocks of Lancashire Cotton Corporation preference and ordinary shares have been placed within a few days. The shares in question, comprising about £900p00 of preference and £400,000 of ordinary, have been sold, through a syndicate, by the Bankers' Industrial Development Company and its associates. It may be recalled that this offshoot of the Bank of England played a big part in initiating the rationalisation of the medium yarn section of the cotton spinning trade in which the Corpora- tion is now the dominant unit. It is perfectly natural that having seen the infant grow to vigorous youth, the B.I.D.0 should now make arrangements to transfer its financial interests to the appropriate holder, namely, the British investor.
At 18s. 9d. the LI ordinaries have been placed on offer to yield 8 per cent. on the 71 per cent. dividend rate just established, while at par the LI preference shares returned 5 per cent. Although the preference dividend is non- cumulative it is very amply covered and the shares have the important attribute of convertibility into ordinaries at par until 1951. So keen has been the demand that the ordinaries have moved up to 195. 6d. and the preference to 20S. 9d., but they are still attractive purchases. * *
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