Lloyds TSB and HBOS Investor Vote Update

Lloyds TSB (LON:LLOY) shareholders will be voting today to decide if they want the bank to take over HBOS (LON:HBOS). Yesterday the Chancellor of the Exchequer Alistair Darling made it clear that if they rejected the merger deal it could end up being extremely expensive for the owner of Bank of Scotland and Halifax (HBOS).

If the merger does go ahead the new super bank will create a bank with 3,000 branches across the UK and 145,000 staff. The vote today at an extraordinary meeting in Glasgow will be for the Lloyds TSB investor’s, however HBOS investors will have to wait to next month to vote.

Earlier this month Sir George Mathewson and Sir Peter Burt proposed that that HBOS should remain independent and they should take over and control of the bank with the help of the government bailout plan.

Source: timesonline