UK in talks with financier over possible rival bid for HBOS

Britain confirmed Saturday it is in talks with a Scottish businessman over a possible rival bid for HBOS, the British banking group hit hard by the subprime crisis.
The announcement came a day after Business Secretary Peter Mandelson cleared the takeover of HBOS -- parent of Bank of Scotland and the Halifax bank -- by rival Lloyds TSB despite competition concerns.
Scottish Secretary Jim Murphy said Saturday he would be meeting with Jim Spowart, creator of HBOS-owned online bank Intelligent Finance, on the matter and had raised the idea of a new bid with the Treasury.
"I have spoken to the Treasury and if there is a second serious bid then the Treasury would be happy to talk to them," he said. The Treasury declined to comment.