Lloyds TSB & HBOS in Merger Talks....

[Thinking Man's Idiot]

HBOS in merger talks with Lloyds





HBOS share price
UK bank share prices
Robert Peston on the HBOS deal

Lloyds TSB is in advanced merger talks with HBOS to create a UK retail banking giant, the BBC has learned.

The deal would end uncertainty about the strength of HBOS following the calamitous run on its shares.


The valuation of HBOS shares would be closer to last week's closing price of 300 pence rather than their current level of around 100p.


Both HBOS and Lloyds declined to comment on the news, broken by BBC Business Editor Robert Peston.


News came as shares in the firm slumped as much as 56% on the London market.


HBOS's shares had rallied in earlier trade, but the recovery quickly fizzled out.


However, the roller coaster continued as news of the merger talks emerged, helping HBOS to recover some of its losses.
Other UK banks also suffered from the loss of confidence in the sector after the crisis on Wall Street.


Royal Bank of Scotland fell 18%, Bradford & Bingley sank 11.7% and Lloyds TSB dropped 7%.



http://news.bbc.co.uk/1/hi/business/7620483.stm