HBOS in Lloyds takeover deal
HBOS is to be taken over by Lloyds TSB, in a government-backed deal.The shares-only agreement values the lender at just £12.2 billion - far below its pre-credit crunch value.However, the ongoing financial crisis has resulted in a disastrous erosion of investor confidence in the firm - which has led to its stock falling by over 75 per cent this year.This deterioration worsened still further with the closure of Lehman Brothers and Merrill Lynch in the US late last week, effectively leaving HBOS with the option of being taken over or facing bankruptcy."This will be a unique opportunity to accelerate and extend our strategy and create the UK's leading financial services group," said Lloyds chairman Sir Victor Blank.HBOS chairman Dennis Stevenson added: "This is the right transaction for HBOS and its shareholders."Job losses are certain among the lenders' workforce, as the two firms combine operations.
Share this..
Related stories
Bank of England set to widen quantitative easing program
The quantitative easing program currently being administered by the Bank of England could well be widened over the next few days as the authorities look to inject more capital into the commercial market. Despite the fact that £80 billion of a fund of £125 billion has already been spent acquiring assets and increasing liquidity in the market place, there has been little positive impact to date. S...
Read MoreAre you banking on a short-term recovery?
As many people across the UK continue to feel the wrath of the UK recession it seems a number of people are planning (or hoping for) for a short-term recovery. As a consequence, we could see a significant increase in the number of people suffering financial distress in the short to medium term unless the economy does in fact spring to life over the coming months.
It seems that a gro...
2m new Cars sold in 2012
2012 saw sales of new cars in the UK peak at an 11 year high, as motorists swapped old cars in need of expensive repairs for newer, more reliable alternatives. With over 2 million new cars leaving the forecourt in 2012 there was a rise of 5.3pc over the figures for 2011. Family run-arounds were the most in demand of the new models with Ford, Vauxhall and VW all represented twice each in the top...
Read MoreBank of England admits UK showing signs of depression
For the first time the Bank of England is now openly discussing the fact that the UK economy is showing worrying signs of moving towards a depression by highlighting the issue in one of it's regular reports. There is also the fact that a deflationary situation is developing which would see prices fall month by month while household debt in the UK continues to rise month by month. Commonly known a...
Read MoreSouth West trains announces 480 job cuts
The unions are this evening outraged at plans to axe 480 jobs with South West trains only days after the company announced substantial fare increases for passengers. There is concern that the rail providers are using the current downturn as a way to trim their costs and trim their staff numbers when in reality they are faring better than average.
It is also worth reminding ourselves...