Lloyds TSB rescue of HBOS may fail as shares tumble

As the stock markets take another battering today, rumours are spreading that the Lloyds TSB takeover deal of HBOS is at risk as the share price of HBOS have tumbled below 30 percent of the value Lloyds TSB offered on September 18 when it was announced.

Financial Experts have said this could raise serious questions as to if the deal will still go ahead. The Royal Bank of Scotland’s share prices slumped a further 10 percent even after a statement from RBS was announced this morning reassuring its customers that the troubled Fortis, the Dutch-Belgian finance group will have no declining affect on the business of RBS.

There is added strain on the Lloyds HBOS deal, all the bust banks who have become victim of the credit crunch over the last two weeks have been bailed out by the respective governments, however in the UK, Lloyds is bailing out HBOS and was buying for that reason at a bargain price. Lloyds TSB are insisting that the deal is still going ahead.

Read the full article in the Guardian