Lloyds TSB shareholders back HBoS takeover plan

Published on Wednesday 19 November 2008 09:28

LLOYDS TSB shareholders have today backed the proposed takeover of ailing rival HBoS.

The shareholders voted 95.98 per cent in favour of the controversial deal at the Lloyds TSB general meeting in Glasgow.

They also backed plans to raise a total of 5.5 billion through the issue of new shares and special preference shares to strengthen Lloyds' balance sheet.

Although it means the deal to create the Lloyds Banking Group has moved another step closer, it still needs to win approval from HBoS shareholders next month.

Lloyds TSB chairman Sir Victor Blank told shareholders the acquisition would transform the bank's position in the highly competitive UK market.

He said: "The proposed acquisition of HBoS is a landmark event in the history of Lloyds TSB and for the financial services industry.

"It gives us a unique strategic opportunity to create the leading financial services company in the UK."

Sir Victor said the deal would result in the creation of a "great British bank".

He added: "We do appreciate that many of our employees may feel apprehensive at this time but, in creating what we believe will be the UK's leading financial services company, we believe the combination will generally provide enhanced opportunities for those who work in our group."

The chairman said it was "inevitable" that there would be some rationalisation, but that employees would be consulted.

Members of the Unite union held the demonstration outside the Scottish Exhibition and Conference Centre in Glasgow, where Lloyds shareholders are meeting to vote on the controversial takeover.

Wearing t-shirts and holding banners with the slogan "secure jobs = secure banks", the union members handed out leaflets to arriving shareholders.

Derek Simpson, Unite General Secretary, said: "Employees from HBoS and Lloyds TSB deserve to have their concerns heard at the shareholders' meeting.

"Along with the loyal customers, employees of Lloyds TSB and HBoS are the life-blood of these banks.

"Without the continuous dedication of these employees throughout the ongoing financial crisis there would be no viable takeover for shareholders to discuss at their meeting.

Members of the Unite union held a demonstration outside the Scottish Exhibition and Conference Centre in Glasgow, where the Lloyds meeting took place.

Wearing t-shirts and holding banners with the slogan "secure jobs = secure banks", the union members handed out leaflets to arriving shareholders.

Derek Simpson, Unite General Secretary, said: "Employees from HBoS and Lloyds TSB deserve to have their concerns heard at the shareholders' meeting.

"Along with the loyal customers, employees of Lloyds TSB and HBoS are the life-blood of these banks.

"Without the continuous dedication of these employees throughout the ongoing financial crisis there would be no viable takeover for shareholders to discuss at their meeting.

Accord, the staff union that represents HBoS workers, had said the deal is the "only way forward" for the Edinburgh-based bank.