Lloyds TSB shareholders approve merger

25-11-2008

Lloyds TSB shareholders approve merger
Lloyds TSB shareholders have resoundingly backed the merger with HBOS.

All resolutions have been passed, including approving the HBOS deal and accepting government money as part of the recapitalisation scheme.

Shareholders were 96 per cent in favour of the merger.

The change of name, to Lloyds Banking Group, was also approved.

Sir Victor Blank, chairman of Lloyds TSB, said: "Today's successful vote marks another important milestone in the proposed acquisition of HBOS plc to create the UK's leading financial services company."

Shareholders arriving at the meeting at the Scottish Exhibition & Conference Centre in Glasgow were greeted by protests from unions angry at the bank's silence on how many jobs are likely to go as a result of the merger.

Last month, the two banks revised their agreement after the markets deteriorated further and HBOS shareholders are now set to receive 0.605 Lloyds TSB shares for every HBOS share they own.

Graham Spooner, investment adviser at The Share Centre, said: "It appears shareholders are banking on the future benefits that a takeover of this size could bring.

"If HBOS shareholders also support the vote, as expected, the takeover will create a powerful entity on the high street, which should offer some long term value for investors."

Mr Spooner said the merger could offer long-term value for investors, while a rejection could lead to HBOS shares plunging even lower.

HBOS shareholders are also yet to approve the merger and will vote at the HBOS general meeting in December.

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