Lloyds TSB HBOS Merger might not happen
November 9th, 2008 | by abigail |The much publicised merger of Lloyds TSB and HBOS (Halifax Bank of Scotland) 2 of the UK’s largest banks might not happen after all, theres reported to be a new bid for HBOS and its speculated to have government support.
The plan to allow Lloyds TSB to takeover HBOS and merge the two banks creating one super bank was pushed through by UK Chancellor Alistair Darling last month, under normal circumstances the deal would have been prevented by the competition commision, the competition commision was supposedly set up to stop large organisation unfairly monopolising and taking advantage of consumers.
Lloyds TSB where planning to takeover HBOS, give the former HBOS directors shares in the newly formed company and sack 25,000 staff in a bid to cut costs.
Two leading scottish bankers, Sir Peter Burt and Sir George Matthewson have reportedly written to current HBOS Cheif Executive Andy Hornby and the banks Chariman Lord Stevenson suggesting they leave and let them takeover.
Many HBOS investors have already argued they no longer need Lloyds TSB after recieving Billions in government cash.