Uncertainty surrounding mystery bidder in HBOS take-over

Uncertainty surrounding mystery bidder in HBOS take-over


The founder of HBOS’s internet banking unit, Jim Spowart, has been involved in preliminary talks with an unknown foreign bank to possibly enter a bid; a bid that could potentially be in competition with the planned Lloyds TSB HBOS take-over.

Both banks have confirmed that the merger is still going ahead as planned, although HBOS spokesman Shane O’Riordain was vague yesterday when talking to Reuters, simply stating that HBOS has “a recommended deal with Lloyds TSB, which brings certainty and tangible financial benefits to shareholders”.

In addition to this, it seems that cost cutting targets may result in job losses for staff, as the banks try to scrape together extra funds to repair some of the damage caused by the credit crunch.

Peter Mandelson has approved the proposed take-over by Lloyds, in spite of the concerns of the banks’ competitors.

It still remains to be seen if any other proposals are offered before the deal is finalised.

By Danielle Williams

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