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Bosses reject rival HBOS takeover bid
AN attempted rival takeover of HBOS by two former bank bosses has been rejected, its chairman has revealed.
The former chief executives of Bank of Scotland and Royal Bank of Scotland had written to HBOS calling for its chairman and chief executive to resign.
Sir Peter Burt, ex-Bank of Scotland boss, and Sir George Mathewson, former RBS chief executive, wanted to stop the planned 12.2bn take-over by Lloyds TSB, claiming HBOS would be better off if it remained independent.
Their letter also called for HBOS chairman Sir Dennis Stevenson and chief executive Andy Hornby to step down immediately, with Sir George becoming the new chairman of HBOS and Sir Peter its chief executive.
But HBOS said the deal with Lloyds TSB was a "superior proposition".
In a letter to the two men, HBOS chairman Sir Dennis said his board saw "no basis for future discussion".
He added: "We do not believe their proposal offers a significant prospect of value for HBOS shareholders."
Sir George, chief executive and chairman at RBS before stepping down in 2006, said: "We will contact some shareholders and ask them what they feel about the proposal. It is all about evaluating the best way forward."
The rejection was supported by Halifax MP Linda Riordan, who said: "This move would have essentially led to partial privatisation and I don't think the hard-working staff in Halifax want that. At least there is some hope under the Lloyds TSB takeover."
Over the weekend the bank defended a reported 330,000 staff party in Edinburgh. A spokesman said it was a modest affair held every year.
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Saturday 11 February 2012
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