HBOS and Lloyds TSB merger in jeopardy as Bank of China look to bid

Bank of China is looking to place a bid for HBOS the UK lender who owns Halifax and Bank of Scotland according to BBC business editor Robert Peston.

HBOS who are in the process of merging with Lloyds TSB rejected an offer from the former chief executive of the Royal Bank of Scotland, Sir George Mathewson and former CEO of Bank of Scotland Sir Peter Burt for the pair to take over the running of HBOS and keep it independent.

Although the bid from China’s giant bank was at early stages according to the report and it has also been noted that it would be unlikely that any formal bid would result.

Employees of Lloyds TSB and HBOS which currently stand at 140,000, have been in fear of losing their jobs through the merger of the two banks after it was reported that they super bank will be making savings of at least £1.5 billion.

The banks will be raising £17 billion as part of the government’s bailout plan.

Source: BBC