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| HBOS board rejects bank duo's bid | HBOS board rejects bank duo's bid |
| (39 minutes later) | |
| An attempted boardroom takeover of HBOS by two former bank chief executives has been unanimously rejected by HBOS's board, its chairman has said. | |
| Sir Peter Burt, formerly of the Bank of Scotland, and Sir George Mathewson, ex-head of the Royal Bank of Scotland, say they should be appointed to lead HBOS. | Sir Peter Burt, formerly of the Bank of Scotland, and Sir George Mathewson, ex-head of the Royal Bank of Scotland, say they should be appointed to lead HBOS. |
| They want the bank to stay independent and intend to canvas shareholders. | They want the bank to stay independent and intend to canvas shareholders. |
| But HBOS said their plan offered no value to its shareholders and a deal with Lloyds TSB was on track. | But HBOS said their plan offered no value to its shareholders and a deal with Lloyds TSB was on track. |
| In a letter to the two men, HBOS chairman Lord Stevenson of Coddenham said his board saw "no basis for future discussion". | In a letter to the two men, HBOS chairman Lord Stevenson of Coddenham said his board saw "no basis for future discussion". |
| He was responding to an earlier letter in which Sir Peter and Sir George had called for his immediate resignation, as well as that of HBOS chief executive, Andy Hornby. | He was responding to an earlier letter in which Sir Peter and Sir George had called for his immediate resignation, as well as that of HBOS chief executive, Andy Hornby. |
| It's a fantastic deal for Lloyds but it's not a good deal for anybody else Sir Peter Burt, former chief executive of the Bank of Scotland | It's a fantastic deal for Lloyds but it's not a good deal for anybody else Sir Peter Burt, former chief executive of the Bank of Scotland |
| They said they would take over temporarily as chairman and chief executive, come up with a plan to keep the bank independent and end the proposed £12bn Lloyds TSB takeover. | They said they would take over temporarily as chairman and chief executive, come up with a plan to keep the bank independent and end the proposed £12bn Lloyds TSB takeover. |
| The letter-writers said by keeping HBOS independent they could protect jobs and bring benefits to customers and shareholders. | The letter-writers said by keeping HBOS independent they could protect jobs and bring benefits to customers and shareholders. |
| A rebuff from the HBOS's boardroom followed, yet Sir Peter and Sir George say they still intend to call an extraordinary general meeting for HBOS shareholders to find out their views. | A rebuff from the HBOS's boardroom followed, yet Sir Peter and Sir George say they still intend to call an extraordinary general meeting for HBOS shareholders to find out their views. |
| They say HBOS no longer needs to be rescued by Lloyds TSB, because the government and Bank of England have offered vital funds. | They say HBOS no longer needs to be rescued by Lloyds TSB, because the government and Bank of England have offered vital funds. |
| Sir Peter, who is credited with creating HBOS, said Lloyds TSB was no safe haven for HBOS. | Sir Peter, who is credited with creating HBOS, said Lloyds TSB was no safe haven for HBOS. |
| It's impossible to ignore the very formidable obstacles faced by Sir Peter Burt and Sir George Mathewson BBC Business Editor Robert Peston Read Robert Peston's blogText of the Burt-Mathewson letterHBOS statement in full | It's impossible to ignore the very formidable obstacles faced by Sir Peter Burt and Sir George Mathewson BBC Business Editor Robert Peston Read Robert Peston's blogText of the Burt-Mathewson letterHBOS statement in full |
| "The black horse has got two broken legs," he said, referring to the company's symbol. "It's a fantastic deal for Lloyds but it's not a good deal for anybody else." | "The black horse has got two broken legs," he said, referring to the company's symbol. "It's a fantastic deal for Lloyds but it's not a good deal for anybody else." |
| He added: "Why would the government want to push through a merger which the Office of Fair Trading has said is against the public interest; jobs will be lost north and south of the border; it is anti-competitive; it is not good for staff; it is not good for customers; and it is not good for shareholders?" | He added: "Why would the government want to push through a merger which the Office of Fair Trading has said is against the public interest; jobs will be lost north and south of the border; it is anti-competitive; it is not good for staff; it is not good for customers; and it is not good for shareholders?" |
| But HBOS insisted a "well-developed deal" with Lloyds TSB was on track and provided certainty to its shareholders and real financial benefits. | But HBOS insisted a "well-developed deal" with Lloyds TSB was on track and provided certainty to its shareholders and real financial benefits. |
| Deal 'on course' | Deal 'on course' |
| Shane O'Riordain, head of communications at HBOS, said the plan from Sir Peter and Sir George did not offer shareholders anything - no cash, no value nor any certainty. | Shane O'Riordain, head of communications at HBOS, said the plan from Sir Peter and Sir George did not offer shareholders anything - no cash, no value nor any certainty. |
| "All they are simply saying is they would come in and run the company instead," he added. | "All they are simply saying is they would come in and run the company instead," he added. |
| "Together with Lloyds TSB we will be a stronger group, a group in a better position to access funding and, after all, funding is the lifeblood of any bank." | "Together with Lloyds TSB we will be a stronger group, a group in a better position to access funding and, after all, funding is the lifeblood of any bank." |
| Members of the public give their views | Members of the public give their views |
| The Treasury said the merger with Lloyds TSB was still on course, but if it did not go ahead, the government would have to look again at any taxpayer support. | The Treasury said the merger with Lloyds TSB was still on course, but if it did not go ahead, the government would have to look again at any taxpayer support. |
| The government has already spent £17bn of taxpayers' money bailing out HBOS. | The government has already spent £17bn of taxpayers' money bailing out HBOS. |
| BBC business editor Robert Peston said he sensed the Treasury was not keen on putting more taxpayers' money into HBOS. | BBC business editor Robert Peston said he sensed the Treasury was not keen on putting more taxpayers' money into HBOS. |
| He said the chancellor, Alistair Darling, had already made it clear he was not enthusiastic about HBOS operating as a stand-alone business and Gordon Brown was not likely to abandon his backing for the Lloyds takeover. | He said the chancellor, Alistair Darling, had already made it clear he was not enthusiastic about HBOS operating as a stand-alone business and Gordon Brown was not likely to abandon his backing for the Lloyds takeover. |
| First Minister Alex Salmond said of Sir Peter and Sir George: "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 said of Sir Peter and Sir George: "They are the two outstanding figures in the Scottish financial sector over the last generation, and therefore their views command great respect." |
| The Scottish National Party has been highly critical of the takeover. There are 17,000 jobs at stake in Scotland and it has become a highly-charged political issue. | The Scottish National Party has been highly critical of the takeover. There are 17,000 jobs at stake in Scotland and it has become a highly-charged political issue. |
| Mr Salmond emphasised all propositions on the future of HBOS should be considered in terms of the best interests of Scottish jobs, business, personal customers and the wider Scottish economy. | Mr Salmond emphasised all propositions on the future of HBOS should be considered in terms of the best interests of Scottish jobs, business, personal customers and the wider Scottish economy. |
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. |