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Second bid could halt HBOS merger Second bid could halt HBOS merger
(about 2 hours later)
The HBOS merger with Lloyds TSB is being thrown into doubt by a possible rival bid for the Halifax Bank of Scotland, BBC Scotland has learned.The HBOS merger with Lloyds TSB is being thrown into doubt by a possible rival bid for the Halifax Bank of Scotland, BBC Scotland has learned.
The government backed the original link-up between the two high street giants but interest from Europe could throw that plan off course.The government backed the original link-up between the two high street giants but interest from Europe could throw that plan off course.
Leading Scots financier Jim Spowart has been approached by a company, so far unnamed, about a possible bid.Leading Scots financier Jim Spowart has been approached by a company, so far unnamed, about a possible bid.
He describes it as "a financial services company with worldwide reach".He describes it as "a financial services company with worldwide reach".
Mr Spowart is meeting with Scottish Secretary Jim Murphy to discuss the possibility of a second bid for the troubled bank.Mr Spowart is meeting with Scottish Secretary Jim Murphy to discuss the possibility of a second bid for the troubled bank.
'Early stage''Early stage'
The meeting comes after Mr Spowart contacted Mr Murphy earlier this week to discuss the possibility that contacts he has with merchant bankers in London could be willing to put together a rival bid.The meeting comes after Mr Spowart contacted Mr Murphy earlier this week to discuss the possibility that contacts he has with merchant bankers in London could be willing to put together a rival bid.
Mr Murphy said: "I have spoken to the Treasury and if there is a second serious bid then they would be happy to talk to them."Mr Murphy said: "I have spoken to the Treasury and if there is a second serious bid then they would be happy to talk to them."
Mr Spowart said there was a "genuine, genuine interest" from the unnamed company.Mr Spowart said there was a "genuine, genuine interest" from the unnamed company.
The possibility of a second deal emerged the day after the government gave Lloyds TSB's planned merger with HBOS the green light after overruling competition concerns raised by the Office of Fair Trading.The possibility of a second deal emerged the day after the government gave Lloyds TSB's planned merger with HBOS the green light after overruling competition concerns raised by the Office of Fair Trading.
Business Secretary Peter Mandelson said the public interest of "preserving the stability of the financial system" outweighed any potential anti-competitive effects.Business Secretary Peter Mandelson said the public interest of "preserving the stability of the financial system" outweighed any potential anti-competitive effects.
Mr Spowart has previously accused Prime Minister Gordon Brown and Chancellor Alistair Darling of trying to "railroad" the merger with Lloyds TSB through.Mr Spowart has previously accused Prime Minister Gordon Brown and Chancellor Alistair Darling of trying to "railroad" the merger with Lloyds TSB through.
BBC Scotland's Business and Economy Editor Douglas Fraser said developments were still at an early stage, but he added that the unnamed bidder had been attracted by the low stock market valuation of Britain's biggest mortgage lender, which could give it a foothold in the UK market.BBC Scotland's Business and Economy Editor Douglas Fraser said developments were still at an early stage, but he added that the unnamed bidder had been attracted by the low stock market valuation of Britain's biggest mortgage lender, which could give it a foothold in the UK market.
He added that the UK Government - which has been pushing for the Lloyds TSB merger to go ahead - is stressing that it will remain neutral if this alternative bid develops, leaving the decision to shareholders.He added that the UK Government - which has been pushing for the Lloyds TSB merger to go ahead - is stressing that it will remain neutral if this alternative bid develops, leaving the decision to shareholders.
In a statement, HBOS said: "We do not comment on market rumours. We have a recommended deal with Lloyds TSB which brings certainty for our shareholders."