Friday December 12, 01:38 PM
HBOS shareholders approve bank takeover: partial results
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LONDON (AFP) - Shareholders in crisis-hit British banking group HBOS (LSE: HBOS.L - news) on Friday approved a takeover by rival Lloyds TSB, according to partial results published Friday.
"HBOS welcomes preliminary voting indications received from HBOS shareholders... (which) show overwhelming support for the transaction," HBOS said in a statement, ahead of a shareholder meeting due Friday in Birmingham, Britain's second biggest city.
The bank (NASDAQ: TBHS - news) said it would publish final voting figures ahead of the weekend.
Shareholders in Lloyds had last month backed the takeover and a recapitalisation that hands the British government a key stake in a new company.
Lloyds TSB agreed in September to buy HBOS in a deal worth 9.8 billion pounds (14.6 billion dollars, 10.9 billion euros) after its target was left facing collapse owing to massive exposure to the US subprime mortgage crisis.
Competition rules have been waived to allow the takeover.
A combination of Lloyds TSB and HBOS will create a new British banking giant, Lloyds Banking Group, which will have 3,000 branches and 145,000 employees across Britain.
HBOS, Lloyds TSB and Royal Bank of Scotland (LSE: RBS.L - news) received government bailouts last month after they were hit by the credit crunch and resulting financial crisis.
HBOS chairman Dennis Stevenson had warned last week that his embattled bank risked nationalisation should the Lloyds takeover fall through.
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