Will the Lloyds TSB takeover of HBOS go through?


Lloyds TSB Shareholders are to vote on the proposed takeover in Glasgow. There has been speculation that the proposal has so far been met with opposition from 2 senior Scottish bankers who think HBOS should remain independent.

The Financial Services Authority has estimated that if HBOS were to remain independent then they would need to raise £12billion.

Even though there have been protests against the proposed takeover it is expected that Lloyds TSB shareholders will vote in favour.

HBOS investors will vote on the deal in December whilst Royal Bank of Scotland shareholders are going to vote on Thursday 20 November over plans to raise £20bn capital.

The 2 Scottish bankers argue that HBOS could survive on its own if they draw on funds on offer under the government's bail out package, however it would need to be renegotiated.

Chancellor Alistair Darling has reiterated that any attempts by banks to renegotiate the government's £37bn bail-out could prove more costly for shareholders as they could potentially end up with a far lower share price than was originally offered.

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