13 Dec 2008

Shareholders approve merger of HBOS and Lloyds

8:41 am on 13 December 2008

Shareholders in HBOS have approved a takeover by Lloyds TSB, clearing the way for a giant new bank.

Overall, investors holding more than 98% of HBOS stock supported the takeover, as well as a recapitalisation that gives the British government a key stake in the bank.

Shareholders in Lloyds backed the takeover and recapitalisation last month.

Lloyds agreed in September to buy HBOS in a deal worth Stg 9.8 billion after HBOS faced collapse owing to massive exposure to the US subprime mortgage crisis.

Competition rules have been waived to allow the takeover.

The new entity will comprise 145,000 employees and 3,000 branches across Britain.

HBOS said last month it expected the transaction to be completed in January.

Lloyds, HBOS and Royal Bank of Scotland received government bailouts last month after they were hit by the credit crunch.