Merger Action Group loses appeal against HBOS takeover

by Gill Montia

Story link: Merger Action Group loses appeal against HBOS takeover

A last minute attempt to prevent the takeover of HBOS by Lloyds TSB has failed.

Details of the takeover were announced in September, with the all-share deal approved by the Government, which was prepared to put aside competition issues to see HBOS rescued by its competitor.

The proposed merger has since been criticised from a number of quarters as representing poor value for shareholders, the taxpayer and consumers.

Last month the Merger Action Group, which comprises businessmen, HBOS customers, account holders and shareholders, submitted its objections to the merger to the Commission Appeal Tribunal, which has the power to review the terms of the takeover.

However, the competition watchdog has thrown out the challenge brought by the group and HBOS shareholders, who are due to vote on the proposals tomorrow, are expected to approve the merger.

Lloyds TSB has pledged to keep the Halifax and Bank of Scotland brands although branch closures are inevitable and analysts have estimated that around 40,000 jobs could be lost from the combined banks’ 145,000 pool of staff.