HBOS Board Unanimously Rejects Bid To Thwart Lloyds Takeover
Peter Burt, former HBOS deputy chairman, and George Mathewson, ex-Royal Bank of Scotland (RBS) chairman, urged HBOS chairman Dennis Stevenson and chief executive Andy Hornby to step down so they could replace them, in a letter made public Saturday.
But in reply, Stevenson told them: "The board has unanimously concluded that your letter does not form the basis of any further discussion between us."
HBOS had earlier stressed that there was no money on the table to back up the pair's proposal, adding that the recommended deal with Lloyds TSB was a "superior proposition".
Lloyds TSB agreed to buy HBOS in September in a deal worth GBP9.8 billion with the group facing collapse due to massive write-downs linked to the U.S. subprime mortgage crisis.
The deal was backed by the U.K. government, but Burt and Mathewson argue it is no longer necessary given the government's subsequent pledge last month to inject up to GBP37 billion into the U.K. banking system in the wake of world financial chaos.
They say HBOS could instead continue as an independent entity which would offer better value for shareholders.
Explaining the move, Mathewson said: "This deal was conceived in response to a particular problem and then the world changed a week later.
"As such, that deal is no longer the proper deal for the shareholders of HBOS or anybody else".
Burt and Mathewson now intend to lobby shareholders into calling an extraordinary general meeting to seek the removal of Stevenson and Hornby.
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(END) Dow Jones Newswires
November 08, 2008 14:37 ET (19:37 GMT)
Publié le 08 novembre 2008 Copyright © 2008 Dowjones
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