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| Version 6 | Version 7 |
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| Bank duo oppose Lloyds-HBOS deal | Bank duo oppose Lloyds-HBOS deal |
| (30 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. | 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 said the deal with Lloyds TSB was a "superior proposition". | |
| The bank said Sir Peter and Sir George had not put forward a substantive offer for HBOS. | |
| "In short there is no money on the table," said a spokesman. | |
| "We do not believe their proposal offers a significant prospect of value for HBOS shareholders." | |
| A Treasury spokesman said the £12.2bn merger with Lloyds TSB was still on course. | |
| "In the real world nothing has happened yet," he said. "Unless parties formally change their minds, then this merger with Lloyds will go ahead." | |
| 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. |
| 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by Lloyds TSB, because the government and Bank of England have offered vital funds to replace those that could be withdrawn by money managers and other creditors.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by Lloyds TSB, because the government and Bank of England have offered vital funds to replace those that could be withdrawn by money managers and other creditors. |
| 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 blogFull text of the HBOS letter | 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 blogFull text of the HBOS letter |
| "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. |
| Speaking from his Perthshire home, Sir George said: "It is a lengthy, detailed letter. | Speaking from his Perthshire home, Sir George said: "It is a lengthy, detailed letter. |
| "We do not believe the alternatives to the Lloyds takeover of HBOS have been properly explored. And, that this deal was conceived in response to a particular problem and then the world changed a week later. | "We do not believe the alternatives to the Lloyds takeover of HBOS have been properly explored. And, that this deal was conceived in response to a particular problem and then the world changed a week later. |
| "As such that deal is no longer the proper deal for the shareholders of HBOS or anybody else." | "As such that deal is no longer the proper deal for the shareholders of HBOS or anybody else." |
| On calling for HBOS' chairman and chief executive to resign, Sir George added: "They are leaving the business soon anyway... So we are suggesting they stand down and we step in for an interim period and we do our best to see what other solution we could put in place." | On calling for HBOS' chairman and chief executive to resign, Sir George added: "They are leaving the business soon anyway... So we are suggesting they stand down and we step in for an interim period and we do our best to see what other solution we could put in place." |
| 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. |
| They are the two outstanding figures in the Scottish financial sector over the last generation, and therefore their views command great respect First Minister Alex Salmond | They are the two outstanding figures in the Scottish financial sector over the last generation, and therefore their views command great respect First Minister Alex Salmond |
| He was chief executive of Bank of Scotland when it merged with the Halifax to form HBOS. | He was chief executive of Bank of Scotland when it merged with the Halifax to form HBOS. |
| A copy of the letter was also sent to First Minister Alex Salmond, who said he would give what it had to say "the most careful consideration". | A copy of the letter was also sent to First Minister Alex Salmond, who said he would give what it had to say "the most careful consideration". |
| He said: "They are the two outstanding figures in the Scottish financial sector over the last generation, and therefore their views command great respect". | He said: "They are the two outstanding figures in the Scottish financial sector over the last generation, and therefore their views command great respect". |
| Mr Salmond emphasised that all propositions on the future of HBOS would be considered in terms of the best interests of Scottish jobs, business, personal customers and the wider Scottish economy. | Mr Salmond emphasised that all propositions on the future of HBOS would be considered in terms of the best interests of Scottish jobs, business, personal customers and the wider Scottish economy. |
| BBC business editor Robert Peston said: "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." | BBC business editor Robert Peston said: "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." |
| 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. |
| Highly critical | Highly critical |
| 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. | 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. | "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 won't 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 won't go of their own accord." |
| 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 HBOS's imposing head office - as a financial centre. | There are also worries a takeover could damage the position of Edinburgh - the location of HBOS's 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 you believe the Lloyds-HBOS deal should proceed? Are you affected by the issues in this story? Send us your comments using the form below. | Do you believe the Lloyds-HBOS deal should proceed? 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. |