HBOS takeover by Lloyds/ TSB has collapsed

bigg

Sky News reported, this is due to the government guarantees, negating the need for a takeover.
I hope this means they will carry on as they were before the financial world collapsed. I was quite happy banking with them.

What I would like to know is, what are the shareholding implications?

BigJonnyB

Not an expert on this by any means, but questions were already being asked. They have apparently asked for £10billion, and their stock market value is only £7billion after the collapse. If this is correct, I can't see any other way than for HBOS to be fully nationalised....

JB

bigg

BigJonnyB wrote: »

Not an expert on this by any means, but questions were already being asked. They have apparently asked for £10billion, and their stock market value is only £7billion after the collapse. If this is correct, I can't see any other way than for HBOS to be fully nationalised....

JB

What would that do to the value of HBOS shares, bearing in mind, I saw one trade of £10 million last week, not mine I hasten to add.

1echidna

A good place to put cash in high interest term deposits of over £50k as they will have government guarantee?

adambro

I think with the support government is offering now to all banks, the chance of HBOS being nationalised is reduced not increased.

bigg

Now Sky News are reporting that an HBOS spokesman is saying the deal is still in place and going ahead.

BigJonnyB

bigg wrote: »

What would that do to the value of HBOS shares, bearing in mind, I saw one trade of £10 million last week, not mine I hasten to add.

They'd go the same way as northern rock and B&B (i.e. worthless, with people waiting to see if the government will pay anything out). The takeover failing could just be a rumour - no confirmation yet with HBOS saying it is still on.

While the government scheme is meant to only part-nationalise the banks, I don't know that there would be any choice with HBOS - if they need more money than their shares can offer as security for the taxpayer there might only be one option.

avantra

mmm ..So Gordo starts to to smell the stench in the stable, well at list sir Fred can retire with full pockets, can't say I will be sad to see the back of him.:T

m_c_s

HBOS shares will dive tomorrow if true!

How much will they have to borrow from the Government?

Tee-A

robert preston on R4 just now - i think he said HBOS takeover is not dead yet. money programme on radio 4 now for an hour that you can phone in a question in case anyone wants to know :-)

Money_Grabber13579

After Lloyds TSB saying that they wouldn't re-negoiate the contract to pay less money, they now want to pay less money! Bit of a back-track there? lol