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| Version 2 | Version 3 |
|---|---|
| Bank duo oppose Lloyds-HBOS deal | Bank duo oppose Lloyds-HBOS deal |
| (10 minutes later) | |
| The former chief executives of Bank of Scotland and Royal Bank of Scotland have written to HBOS calling for its chairman and chief executive to resign. | The former chief executives of Bank of Scotland and Royal Bank of Scotland have written to HBOS calling for its chairman and chief executive to resign. |
| The writers, Sir Peter Burt and Sir George Mathewson, are trying to "blow up" the takeover of HBOS by Lloyds TSB, says BBC business editor Robert Peston. | |
| Sir Peter and Sir George say HBOS and its shareholders would be better off if the bank were to remain independent. | Sir Peter and Sir George say HBOS and its shareholders would be better off if the bank were to remain independent. |
| HBOS is being taken over by Lloyds TSB in a £12.2bn merger. | HBOS is being taken over by Lloyds TSB in a £12.2bn merger. |
| Lloyds TSB has said that its acquisition of HBOS would save it at least £1.5bn ($2.4bn) a year, raising fears of heavy job losses from the merger. | Lloyds TSB has said that its acquisition of HBOS would save it at least £1.5bn ($2.4bn) a year, raising fears of heavy job losses from the merger. |
| Their initiative may be particularly welcomed in Scotland, where there has been widespread concern that the takeover would lead to significant job losses BBC Business Editor Robert Peston Read Robert Peston's blog class="" href="/1/hi/uk_politics/7717301.stm">Full text of the HBOS letter | |
| The letter-writers argue HBOS no longer needs to be rescued by Lloyds TSB, because the government and Bank of England have offered vital funds to replace those that could be withdrawn by money managers and other creditors. | The letter-writers argue HBOS no longer needs to be rescued by Lloyds TSB, because the government and Bank of England have offered vital funds to replace those that could be withdrawn by money managers and other creditors. |
| "It is our intention to create a detailed alternative plan that we believe will represent better value for both the HBOS shareholders and stakeholders alike by keeping HBOS as an independent bank," their letter says. | "It is our intention to create a detailed alternative plan that we believe will represent better value for both the HBOS shareholders and stakeholders alike by keeping HBOS as an independent bank," their letter says. |
| Taxpayer support | Taxpayer support |
| The intervention by Sir Peter and Sir George will be difficult for the board of HBOS to ignore, not least because the former is credited with creating HBOS. | The intervention by Sir Peter and Sir George will be difficult for the board of HBOS to ignore, not least because the former is credited with creating HBOS. |
| He was chief executive of Bank of Scotland when it merged with Halifax to form HBOS. | He was chief executive of Bank of Scotland when it merged with Halifax to form HBOS. |
| "Burt and Mathewson are persuaded that HBOS would be viable as an independent, thanks to the massive taxpayer support offered to all the banks in October by the Treasury," says BBC business editor Robert Peston. | |
| Our correspondent says Sir Peter and Sir George have sent the letter to the chairman of HBOS, Sir Dennis Stevenson. | Our correspondent says Sir Peter and Sir George have sent the letter to the chairman of HBOS, Sir Dennis Stevenson. |
| In it they say Sir Dennis and HBOS chief executive Andy Hornby should resign immediately - and that Sir George Mathewson should become the new chairman of the bank and Sir Peter Burt should be its chief executive. | |
| "Burt and Mathewson would stay in post long enough to ensure that HBOS was once again perceived to be on a sound footing," says our correspondent. | |
| "They would commit to recruit new credible management for the top positions at the bank, to make themselves redundant just as soon as the bank's owners felt that was prudent. | "They would commit to recruit new credible management for the top positions at the bank, to make themselves redundant just as soon as the bank's owners felt that was prudent. |
| "They will canvas shareholders in an attempt to requisition an emergency meeting to have Stevenson and Hornby removed, if they wonât go of their own accord." | "They will canvas shareholders in an attempt to requisition an emergency meeting to have Stevenson and Hornby removed, if they wonât go of their own accord." |
| Highly critical | Highly critical |
| The initiative may be popular in Scotland, where there has been widespread concern the takeover would lead to significant job losses. | The initiative may be popular in Scotland, where there has been widespread concern the takeover would lead to significant job losses. |
| There are also worries a takeover could damage the position of Edinburgh - the location of HBOSâs imposing head office - as a financial centre. | There are also worries a takeover could damage the position of Edinburgh - the location of HBOSâs imposing head office - as a financial centre. |
| The Scottish National Party has been highly critical of the takeover. | The Scottish National Party has been highly critical of the takeover. |
Do | />Do you believe the Lloyds-HBOS deal should procede? Are you affected by the issues in this story? Send us your comments using the form below. |
| In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. | In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. |