Lloyds TSB investors have overwhelmingly backed the bank’s controversial rescue of HBOS and its plans to raise £5.5bn of capital despite concerns expressed by a handful of shareholders. Several hundred investors gathered in Glasgow to hear Sir Victor Blank, Lloyds chairman, say the “landmark” deal would transform his bank, deliver £1.5bn of cost savings and create value for HBOS and Lloyds shareholders. The vote to buy HBOS, backed by 96% of investors, clears a major hurdle for the all-share takeover. Investors also backed a plan for Lloyds to raise capital through a government-backed placing. HBOS holds a vote for its investors on Dec 12 Sir Peter Burt and Sir George Mathewson, two Scottish bankers campaigning to keep HBOS independent, seemed on Wednesday to pull back from the fight after a government statement this week said that banks had no automatic right to state funding.

This entry was posted by Gwen Robinson on Thursday, November 20th, 2008 at 5:46 and is filed under Capital markets, M&A, People. Tagged with hbos, lloyds tsb. Edit this entry.