Embattled HBOS finally admitted on Wednesday morning, after considerable speculation, that it is in merger talks with rival Lloyds TSB.
“In the light of market speculation, the board of HBOS confirms that it is in advanced talks with Lloyds TSB Group which may or may not lead to an offer being made for HBOS,” HBOS said in a statement.
HBOS, the group created by the merger of Halifax and Bank of Scotland, is Britain’s largest savings group. But its shares have collapsed in recent days as investors have dumped the stock, fearing the company may be over-exposed in the current credit crisis, meaning it can’t fund its positions.
HBOS shares plunged over 50% in early trading to 88p but have since recovered during the day. At 12:30 GMT, HBOS’s share were up 4% at £1.89 per share.
Source: Thomson Merger News