From Bloomberg:
The U.K.’s Competition Appeal Tribunal will review a challenge to Lloyds TSB Group Plc’s 6.4 billion- pound ($9.4 billion) takeover of HBOS Plc that was filed by a Scottish group opposed to the deal. The antitrust tribunal said today in London that it would hold a two-day hearing on the merits of the claim on Dec. 8 and 9.
The Merger Action Group, an alliance of businessmen, account holders and shareholders, filed a challenge in a last-ditch effort to halt the takeover of Edinburgh-based HBOS Plc, arguing it would hurt competition. The group asked the tribunal to overturn the government’s clearance of the deal, brokered in the midst of September’s banking industry turmoil.
“We believe this appeal by the Merger Action Group has no merit and will be unsuccessful,” said HBOS spokesman Shane O’Riordain. “Our deal is in the interests of financial stability and our shareholders.”
In case you did not know MAG was formed to:
Challenge the decisions made by the UK Government in promoting the merger between HBOS and LLoyds TSB whilst disregarding any alternative, and waiving the normal process of competition. We believe these decisions to be unlawful and against the interests of fostering employment, competition and the taxpayer’s best interest.
The group’s plan is to have CAT quash the decision, send it back to Lord Mandelson, with an instruction that the merger be referred to the Competition Commission. If that happens it could lead to an inquiry lasting up to six months, which would probably derail the deal.
Nice in theory but will it work in practice?
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