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Is Lloyds looking at revising HBOS offer?

Since the deal to merge Lloyds Bank and HBOS was announced there has been a wave of criticism crashing against the Lloyds Bank boardroom door. Well it looks as though Lloyds Bank may well have the last laugh with rumours they are looking to revise the HBOS offer. Currently priced at 0.83 Lloyds Bank shares for every HBOS share there are strong signs that this could be revised down to 0.6 Lloyds Bank shares per HBOS share. So how can Lloyds Bank amend the 'agreed' terms?

In a normal market it would be highly unlikely to see an agreed offer revised at a later date unless it was agreed by both parties and in the 'interests' of shareholders. However, these are very abnormal times and there is speculation that for the good of the combined group the terms may well be revised although HBOS shareholders will lose out on the initial deal. There would need to be some form of clearance from the regulatory authorities but when you consider what is going on in the investment markets they should be very sympathetic.

There will obvious be a backlash from HBOS shareholders but the bottom line is that without Lloyds Bank they would likely be under the control of the government, with little chance of any return, or in administration. At the end of the day the HBOS shareholders can always vote against the deal - but what option do they really have?

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