HBOS flag will be lowered for ever

Published on Thursday 15 January 2009 20:12

IT HAS flown above the door of Bank of Scotland's headquarters on the Mound since the merger with Halifax eight years ago.

But the iconic HBOS flag will flutter in the Edinburgh breeze for the last time this weekend as the company becomes part of the Lloyds Banking Group "superbank".

The new parent company is understood to be planning to replace the blue HBOS-logo banner with its own flag, which is set to be flying by first thing Monday morning.

The 12 billion takeover will formally occur on Monday, when trading will begin in Lloyds Banking Group shares.

HBOS shares were suspended from the London Stock Exchange at 6pm on Wednesday night – and will be exchanged for shares in the enlarged group after market close this evening. HBOS shares are worth 0.605 of each issued Lloyds share.

When the bank leaves the FTSE 100 at 5pm, construction company Balfour Beatty will take its place.

The two banks yesterday said no major events were planned to mark the takeover, adding that it would be "business as usual" on Monday morning.

A banking insider told The Scotsman that the HBOS flag would be removed over the weekend, with a Lloyds Banking Group-branded version put up in its place.

He said: "There won't be a ceremony or anything – there won't exactly be a piper to accompany the changing of the flags, but it will happen before Monday."

A spokesman for HBOS added: "It is all going to be low key on Monday. It will be business as usual. It is very early days in terms of how the merger will practically work."

The Bank of Scotland-branded stone sign indicating the Museum on the Mound is to remain, as is the plaque at the front of the HQ.

The new group is to use the Bank of Scotland name in its retail operations north of the Border – but the financial institution is to undergo a major rebrand once the takeover has been completed, including a new logo.

Lloyds TSB Scotland branches are also to be renamed as Bank of Scotland as part of the merger process.

It is understood that Scottish managing director Susan Rice – the former chief executive of Lloyds TSB Scotland – is likely to be based at the Mound building eventually, although it is believed that her move will not be complete by next week. Formerly the managing director of personal banking at Bank of Scotland, Ms Rice worked from the Mound in the days before the Halifax merger.

And Archie Kane, head of Lloyds TSB in Scotland, is confirmed to be moving into the former HBOS HQ by Monday morning.

Only the departing HBOS directors – including the former Bank of Scotland corporate head Peter Cummings and executive director Colin Matthew – are to immediately leave their desks in the HQ.

The former HBOS communications, legal and human resources teams will remain at the Mound initially, but it is not clear if their counterparts from Lloyds TSB, which has its Scottish head office on George Street, will join them.

Fears have been raised that the takeover could lead to as many as 40,000 job losses, but Lloyds cuts on such a large scale.