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HBOS and Lloyds TSB rumoured to be in merger talks |
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HBOS, the beleaguered UK bank, is rumoured to be in merger talks with LLoyds TSB. The HBOS share price which fell to £0.88 in early trading rose to £1.65 on the news. HBOS and Lloyds declined to comment on the news, which was reported by the BBC Business Editor Robert Peston. The Guardian newspaper reported yesterday that traders said LLoyds had been supported by talk of Chinese stakebuilding, and 130m shares were traded yesterday and 100m the previous day compared to a recent average of around 40m. An acquisition of HBOS could be seen as a defensive move by LLoyds. The problem for HBOS is that if LLoyds has had discussions with them and then LLoyds walks away HBOS will be be in a far worse position.
Lloyds TSB Market capitalisation: £18.31bn Profit in 2007 before tax: £4bn Estimated market share of mortgages in 2007: 8.1% Customers: 16m Private shareholders: 800,000 Total pay of Eric Daniels, CEO in 2007: £2.88m Employees: 67,000 Lloyds founded: 1765 HBOS Market capitalisation: £9.6bn Profit in 2007 before tax: £5.47bn Estimated market share of mortgages in 2007: 20.1% Customers: 23m Private shareholders: 2m Total pay of Andy Hornby, CEO in 2007: £1.9m Employees: 72,000 Bank of Scotland founded: 1695 |
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HBOS plc is a United-Kingdom based company. It is the holding company of the HBOS Group. It operates through five divisions: Retail, Corporate, Insurance & Investment, International and Treasury & Asset Management. The Company’s Retail range of products includes personal and business banking products and services to 23 million customers. It’s trading names include Bank of Scotland, Halifax, Lex, Clerical Medical, Bank West and St Jame’s Place.
Latest News
Friday, 12 December,2008: HBOS shareholders today approved the acquisition of the bank by Lloyds TSB. Prior to the meeting HBOS issued a trading statement, which a number of commentators regard as a profits warning. The company announced that its bad debt and impairment charges would rise to £ 8.0 billion for the year todate. TRADING UPDATE – 12 DECEMBER 2008 The following Trading Update is being provided in anticipation of the launch of the proposed placing and open offer and in advance of the meetings to be held today at the NEC Birmingham, to approve that placing and open offer and acquisition of... Readmore | 19 November 2008Results of General MeetingLloyds TSB Group plc held its General Meeting today to vote on the proposed acquisition of HBOS plc,the proposed placing and open offer and the proposed capitalisation issue. All resolutions were passedby a significant majority.Commenting on the positive outcome, Sir Victor Blank, Chairman of Lloyds TSB said; “Today’ssuccessful vote marks another important milestone in the proposed acquisition of HBOS plc to create theUK’s leading financial services company. I am delighted that our shareholders have endorsed thecompelling strategic logic for this transaction.”Eric Daniels, Group Chief Executive of Lloyds TSB further commented; “We are very pleased to... Readmore | HBOS chairman Dennis Stevenson and Chief Executive, Andy Hornby, have agreed to stand down once the Lloyds takeover is completed, victims of a strategy that involved excessive lending to the property market. The departing executives will also miss out on bonuses, a concession to the growing public anger at rewards for failure. Mr Hornby, earned £1.93m last year, including a £703,000 bonus. The LLoyds TSB press release concerning the HBOS acquisition a government support follows. Readmore | Recommended acquisitionofHBOS plcbyLloyds TSB Group plcto be implemented by means of a scheme of arrangementunder sections 895 to 899 of the Companies Act 200618 September 2008Summary• Lloyds TSB and HBOS announce that they have reached agreement on the terms of a recommended acquisition by Lloyds TSB of HBOS. Under the terms of the Acquisition,HBOS Shareholders will receive 0.83 Lloyds TSB Shares for every 1 HBOS Share. Theoffer values HBOS at £12.2 billion (based on Lloyds TSB’s closing price on 17 September2008 of 279.75 pence). Existing Lloyds TSB Shareholders will own approximately 56 percent. of the issued share capital of Lloyds... Readmore | HBOS, the beleaguered UK bank, is rumoured to be in merger talks with LLoyds TSB. The HBOS share price which fell to £0.88 in early trading rose to £1.65 on the news. HBOS and Lloyds declined to comment on the news, which was reported by the BBC Business Editor Robert Peston. The Guardian newspaper reported yesterday that traders said LLoyds had been supported by talk of Chinese stakebuilding, and 130m shares were traded yesterday and 100m the previous day compared to a recent average of around 40m. An acquisition of HBOS could be seen as a defensive move by LLoyds.The problem for HBOS is that... Readmore | | Show options |
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Recent Events - HBOS
Full Year 2007 Results For the full year, 2007, HBOS reported Profit After Tax of £ 4.1 billion (up 4%), Underlying EPS of 106.2p (up 6%), and a Dividend per Share of 48.9p (up 18%). The Chairman stated that the dividend increase “was a clear demonstration of the confidence we have in the continuing earnings momentum and strong cash generative capabilities of HBOS”. The Group’s Tier 1 Capital fell from 8.15% at the end of 2006 to 7.4% at the end of 2007. Fair value adjustments on asset backed securities in the Treasury and Asset Management Division were negative £ 236 Million. False Market Rumours - March 2008 On 19 March, 2008, the Groups share price fell by 17% after false rumours were spread that the Bank had approached the Bank of England for emergency funding. The Financial Services Authority is conducting an investigation into the possible attempted market manipulation. Rights Issue – Scrip Dividend – Write-downs In April 2008, HBOS announced a £4.0 billion rights issue on a 2 for 5 shares basis. The Group also announced that it would drop its divided and payout ratio from 46% to 40% for the medium term. The interim dividend for 2008 would be paid out as a share dividend and return to a cash payment for the final dividend. Fair Value Adjustments in the Trading Book increased by £ 970 million and in the Banking Book by £1,874 million. Executive Compensation Starting in 2008, the Group has reduced the performance targets for senior executives as it believes that the previous targets will be difficult to achieve in light of predicted medium term market conditions.
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