LloydsTsb/HBOS Merger?

Robinmsa

If either set of Shareholders rejects the Idea of a merger, I can actually see this being the LloydsTsb shareholders what will happen to the proposed £17 billion bailout offered today.

Currently Shares are trading at

Hbos 85.90 -38.30 -30.84%

LloydsTsb 153.90 -35.50 -18.74%

on the day.

Will the Government Nationalise fully HBOS???

Will it Nationalise LloydsTsb???

Will it do either or both does it have a PLAN C and D?

Incredibly the Ftse is up today, but the banking Sector is very obviously Down.

Robinmsa

So what will happen?

JM_2

Robinmsa wrote: »

If either set of Shareholders rejects the Idea of a merger, I can actually see this being the LloydsTsb shareholders what will happen to the proposed £17 billion bailout offered today.

Currently Shares are trading at

Hbos 85.90 -38.30 -30.84%

LloydsTsb 153.90 -35.50 -18.74%

on the day.

Will the Government Nationalise fully HBOS???

Will it Nationalise LloydsTsb???

Will it do either or both does it have a PLAN C and D?

Incredibly the Ftse is up today, but the banking Sector is very obviously Down.

Please refer :


http://forums.moneysavingexpert.com/showthread.html?p=15028589&posted=1#post15028589


Hi,

I hope LLoyds TSB shareholders vote ' No'

Particularly the Institutions. If they have any sense. After all the dividend on ordinary shares is being stopped.

And the government are getting 12 % Dividend on Preference Shares. Complete rip-off.


JM2

baby_boomer

Alex Brummer in ThisIsMoney

"As for the proposed Lloyds TSB/Halifax Bank of Scotland merger, it is, in my view as a longstanding private investor in Lloyds, an abomination....

.....how have those shareholders been rewarded for their loyalty? They have been bullied into a competition-busting merger with HBOS in which the terms are deteriorating all the time. The handsome dividend has been cancelled. Lloyds TSB investors have a right to be angry."

Neil Collins in the Evening Standard

"....on the basis of what we do know, the shareholders must vote against becoming the financial arm of the Government. If this plan goes through, value will have been permanently destroyed on a massive scale."

bristolleedsfan

http://uk.reuters.com/article/personalFinanceNews/idUKLNE49F03520081016?rpc=401&feedType=RSS&feedName=personalFinanceNews&rpc=401

jonesMUFCforever

I believe that LTSB is strong enough to stand on its own two feet.
HBOS is a basket case and indeed would have to be nationalised if the deal in some format does not go through.

As a LTSB shareholder I too will be voting against the merger.

I can take the fact that the share price has crashed - that is a risk all shareholders take when buying the shares - but the fact that a very profitable bank has to scrap dividends on ordinary shares for 5 years is out of order.

baby_boomer

With Lloyds staff share scheme there are many staff who are also shareholders and I would expect them to vote against on job concerns.

As ever, it will be the institutions who decide, however.

Perhaps the income funds have already sold up. Otherwise I would expect them to vote against.

And where is the Conservative Party on this?

Jeff Randall in the Telegraph

"....Lloyds TSB was never a basket case. It was one of our more prudently run institutions. Its reward for dull solidity was to be bullied by Mr Brown into a daft deal with a dysfunctional HBOS. As a result, Lloyds' share price has been caned. Worse still, 40 per cent of the combined entity has now been snapped up by government. Much shareholder value in Lloyds has been destroyed, completely unnecessarily. Investors are, rightly, outraged. Why is the Opposition not opposing this?..."

## Probably because they don't want to be seen taking the side of bank shareholders, Jeff.

opinions4u

1) Long term, the deal is superb for the shareholders - in both companies - 30%+ market share, ability to slash cost etc gives a competitive advantage that could never have been dreamed of previously.
2) Politically, Brown and Darling staked their reputations on the deal - before other necessary events took over (recapitalisation etc).
3) From a competition perspective, it's a nightmare for consumers and should be stopped. It was right when announced, but the government bailout that subsequently came along makes it wrong now.
4) It won't be stopped because of points (1) and (2).

Robinmsa

Surely based on this moment in time, Lloydstsb are going to have to reduce their offer further, as HBOS shares are currently trading at less than 50%, of the current Lloyds value. As Lloydstsb shareholders are still not getting the correct value?

Idea?

Why doesn't Eric Daniels scrap the Idea, causing HBOS to be Nationalised, then buy the best bits, like Santander (sorry if spelt incorrectly) did with Bradford & Bingley?

DocProc

I'm losing confidence in Daniels.

I'm sure lots of us have listened to his conference call mentioned earlier on this thread. On it he talks of how Lloyds TSB believe the dividend policy can be changed.

On the Politics show on Sunday morning on BBC TV, a Euro MP (sorry, I forget his name) was interviewed and adamantly said that the idea of 'No dividends' came from the EU. He explained this ruling did not come from H M Gov, as we have all been led to believe, but from Brussels.

I agree with the comment from Robinmsa above. Ambitiously, Daniels has collapsed the share price of Lloyds TSB, completely reduced the dividend payouts to 'Nil'. He will also surely need to throw tons of people out of work.

And he could have picked the best bits out from the arms of the HBOS Receiver.

ad44downey

lloyds need to pull out of this stupid deal asap. If they don't they could be dragged down the toilet along with the rubbish that is hbos