Lloyds TSB given formal approval for takeover of HBOS

Published on Monday 12 January 2009 21:14

A JUDGE gave formal approval yesterday to the Lloyds TSB takeover of HBOS.

Lord Glennie heard arguments from Robert McDowell, a banker and economist, and Ian Fraser, a financial journalist, opponents of the deal who said they were not intent on upsetting the plans, but wanted markers laid down for possible future reform of company law.

HBOS lawyers had petitioned the Court of Session for the sanctioning of the Scheme of Arrangement under which it is to be taken over by Lloyds TSB.

David Sellar, QC, for HBOS, spoke of the "horrible complexity" of the arrangement and how reports prepared by a court- appointed solicitor had left "no stone unturned" to investigate compliance with company law. Mr McDowell said the takeover was extraordinary in involving a leading Scottish bank and "a national champion".

He added: "Our interest in bringing these questions is not to disrupt or upset the takeover, it is very much to look at what has occurred as an example of what we would be able to look at in detail for the future."

A possible conflict of interest by the reporter was raised.

Lord Glennie said he believed the reporter had shown objectivity in highlighting a potential problem over HBOS serving notice of a meeting of shareholders in foreign countries.

Lord Glennie said he took into account the non-serving of notices, but sanctioned the deal.