British bank Lloyds TSB announces HBOS takeover
British bank Lloyds TSB announced on Thursday it was taking over distressed rival Halifax Bank of Scotland (HBOS) in a 12.2-billion-pound (15.4 billion euro, 21.8 billion dollar) deal.
The landmark all-share deal, effectively a rescue plan for Britain's biggest mortgage lender, comes after HBOS shares plummeted in recent trading following days of global economic crisis.
Together, the banks hold nearly a third of Britain's savings and mortgage market but competition watchdogs will not block the deal as it was backed by the government.
Sir Victor Blank, chairman of Lloyds TSB, said the deal offered a "good deal for customers and shareholders" while his HBOS counterpart Dennis Stevenson said it was "the right transaction for HBOS".
HBOS shares were down 19.2 percent at the close of trading on Wednesday, against the backdrop of the dramatic collapse of US investment bank Lehman Brothers, nationalisation of US insurance giant AIG, and shock after shock in financial markets.
The deal was described by regulator the Financial Services Authority (FSA) as "a welcome move as it is likely to enhance stability within financial markets and improve confidence among customers and investors".
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