Lloyds TSB in takeover bid for HBOS

Shares prices in HBOS increased by 15 percent on Wednesday as it was reported that Lloyds TSB are in talks to buy Britain’s biggest mortgage lender HBOS.

Lloyds TSB and HBOS have refused to comment today about the possible takeover, but it’s more than likely that the UK listing Authority will force HBOS into updating its market information later today. The take-over talks came to light after the city watchdog the Financial Services Authority (FSA) was forced to issue a statement on the strength of HBOS’s business to stop a freefall in its share price.

After the collapse of Lehman Brothers on Monday HBOS share price have taken a battering as investors doubted the UK bank’s ability to fund its business. Investors dumped their shares trying to safeguard themselves from further exposure, resulting in a precipitous share price drop of over 50 percent to just over 80p for first trading this morning.

Lloyds TSB had said in the past that it would look into acquiring companies struggling in the current financial markets.

Read the full article in the times