HBOS Union Accord Push for Lloyds TSB Merger

Lloyds TSB (LON:LLOY) taking over HBOS (LON:HBOS) is the best thing that could happen right now since there is no other serious bidder according to trade union Accord.

Accord that is the trade union which represents the employees of HBOS said it’s would be unlikely that HBOS could survive as an independent bank. The general secretary of Accord Ged Nichols who spoke at a Lloyds TSB shareholders meeting said that the only way forward for HBOS would be for Lloyds TSB to continue with the takeover.

He also added in the meeting ahead of the shareholders Vote that the government would take a majority stake if the takeover bid failed. If the government did have to intervene and take the majority share HBOS would be subject to European Union competition rules like Bradford & Bingley and Northern Rock.

If HBOS did have government control it would take away the ability the bank has to compete for new business and undoubtedly lead to failure in the loan and mortgage market.

Source: APgoogle