Lloyds TSB and HBOS deal still going ahead
Amid reports that a rival bidder is looking to acquire HBOS, the 2 banks confirm that they are both committed to the merger deal.
Lloyds TSB and HBOS are looking to raise up to £17bn, £4.5bn from Lloyds TSB and £8.5bn for HBOS. If investors do not take up the shares then the Government will acquire them which could be worth up to £4bn.
When the merger goes ahead Lloyds TSB has said they could save £1.5bn a year and have proposed that the two firms be known as "Lloyds Banking Group".
Lloyds TSB has so far renegotiated the terms of the deal twice and HBOS shareholders have now been offered 0.605 Lloyds shares for every HBOS share.