Martinas B.

Lloyds TSB (NYSE: LYG) Rescues HBOS

by Martinas B. September 18, 2008
Lloyds+TSB_logo.jpgAs if it hadn't been enough for us to digest Lehman's bankruptcy, Merrill Lynch's takeover and AIG's nationalisation, today we're hearing that the UK's largest mortgage provider HBOS has merged with another British bank Lloyds TSB (NYSE: LYS).

HBOS, the biggest mortgage provider accepted Lloyds TSB, which is currently the fifth largest banking group in the UK, offer for 232p per share or £12.2 billion. Lloyds TBS will pay wholly in shares.

The duet will now be one of the major forces in the Britain's savings and mortgage market as it will hold nearly a third of the share.

Sir Victor Blank, chairman of Lloyds TSB, said the deal offered a "good deal for customers and shareholders" while his HBOS counterpart Dennis Stevenson said it was "the right transaction for HBOS".

"This is the right transaction for HBOS and its shareholders. Against the backdrop of the very
high levels of volatility our industry is experiencing, the combined group will be one of the
strongest players in the UK financial services sector," commented Dennis Stevenson, Chairman of HBOS.


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