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Search forLloyds TSB takeover goes ahead
Wednesday, November 19, 2008, 16:36
The shareholders voted 95.98% in favour of the controversial deal at the Lloyds TSB Group general meeting in Glasgow.
They also backed plans to raise a total of £5.5 billion through the issue of new shares and special preference shares to strengthen Lloyds’ balance sheet.
There is concern amongst the 1,360 staff at C&G at Barnwood about how the takeover will affect jobs.
Some financial analysts have estimated that the merger could cost between 20,000 and 40,000 across the two banks which together employ more than 140,000 people.
Scottish Liberal Democrat leader Tavish Scott staged a protest alongside union protesters at today’s shreholders meeting.
He said: “I want to keep these two great banks independent.”
He said Lloyds shareholders were entitled to vote for what had been described as the “deal of the century”.
But he went on: “The Labour Government has to explain why losing thousands of banking jobs, branches across Scotland and competition is a price worth paying to force through this takeover.”
Graham Spooner, investment adviser at The Share Centre, said: “When it came to the crunch more than 96 per cent of Lloyds TSB shareholders supported the proposed takeover.
“It appears shareholders are banking on the future benefits that a takeover of this size could bring.
“ Although HBOS shareholders will not be voting until 12 December 2008, we believe they have little choice, but to support the vote. It is unclear as to whether the bank has a contingency p
“In fact, the focus of the takeover is now likely to be on the necessary job cuts.”
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