LloydsTsb/HBOS Merger?

DocProc

With regard to mortgages:

Mortgage lenders in Britain will have to abide by new laws according to the Prime Minister, under the new rules the lenders will have to prove that home repossession is only used as a last resort.

The new rules to be introduced are to stop lenders rushing in to repossess homes to allow them to get a better price for the property when homeowners are unable to meet their monthly mortgage payments.

As unemployment and mortgage rates continue to rise, repossession are expected to increase further, already this year it’s thought that repossession have risen 50 percent and about 45,000 homes have been repossessed.

Northern Rock came under fire recently being accused of being “inflexible” with borrower who fell into arrears and repossessing homes to fast according to debt charity Credit Action.

Under the new law, lenders will be pushed to allow borrowers to take repayment holidays of up to three months. Or they lenders are to be encouraged to change the monthly payment plan by either switching to interest only or extending the mortgage term.

The above was taken from http://www.100mortgages.org/category/mortgage-news/

opinions4u

aqueoushumour01 wrote: »

If the two banks do merge does anyone know whether HBOS will still be run as a separate brand (with shares trading separately to those of lloyds tsb) or will HBOS shareholders receive x amount of lloyds tsb shares with the HBOS shares disappearing altogether?

The current offer is 0.605 Lloyds shares for each HBOS share.

aqueoushumour01

opinions4u wrote: »

The current offer is 0.605 Lloyds shares for each HBOS share.

thanks. i somehow missed that info

ad44downey

I'm still in shock that Lloyds have agreed to rescue this pile of shiite.

beccybobeccy

As far as I know they will be one new new superbank under one new name. With both brands still operating on the high street.

DocProc

HLOS? Haitch Loss?
LBOS? Elbows? Hell Boss?
LSCO? Lloyds Scottish?
SCOL? Scottish Lloyds?

sabretoothtigger

Losthosbos

Llloyds actually outperformed the market on friday & all week in fact. I find this backs my theory that if the market halves in value, banks will become defensive shares to hold

Lloyds to complete HBOS deal in January

[SIZE=-1]LONDON (Reuters) -

Lloyds TSB expects to complete its takeover of HBOS and capital raising by January, after giving shareholders a vote on both in the third week of November.

Lloyds said it expects to send a circular on the HBOS deal and its capital raising to shareholders in the first week on November. The meeting to approve both is expected to take place about two weeks after that, it said.

Lloyds stepped in to buy HBOS last month in a government-brokered deal, after its target was hit by a deepening global financial crisis and concerns about its exposure to the weakening housing market.

Both banks were forced to recapitalise under a government plan last week, which will see Lloyds raise 5.5 billion pounds and HBOS raise 11.5 billion.

Shareholders will be offered shares in both banks as part of the fundraising, but if they do not take any the government will end up with a 43.5 percent stake in the enlarged bank.

Lloyds cut its offer price after the bailout and is now offering 0.605 of its shares per HBOS share, down from 0.833 originally.
The deal will create a dominant UK retail bank and should deliver annual cost savings of at least 1 billion pounds.
[/SIZE]

Robinmsa

They may even cut the price of the offer again... Hopefully they should make it less than 50%, I would then feel more confident. But in reallity Lloyds should just let HBOS go, get nationalised and then purchase the best bits. Barclays/Lehman Brothers springs to mind...

moneylover

Do you still get a vote if you buy/sell shares electronically through an online broker ? I have a feeling that perhaps you don't - I don't have a certificate or any other correspondence from Lloyds relating to my holding which is held through Selftrade.

ad44downey

I think you do, contact your online broker, they'll be able to tell you definitively