HBOS has delivered a swift rejection to a plan by two Scottish bankers to save the banking giant as a standalone entity.
In a reply to former RBS chief Sir Peter Burt and Bank of Scotland head Sir George Matthewson this morning, HBOS claimed the duo’s ‘alternative plan’ released in a letter to the company on Saturday lacked any specifics whatsoever.
Burt and Matthewson are trying to trying to derail the HBOS merger with Lloyds TSB, calling for shareholders to instil the bankers as chairman and chief executive.
However, the HBOS board “unanimously concluded” Burt and Matthewson’s letter did not form any basis for further discussions.
“You do not describe any specific aspect whatsoever of this plan,” the HBOS reply states.
“Nor do you set out a value proposition for shareholders, or address how your idea would provide certainty or stability for HBOS and its shareholders and customers.
“You provide no assurance as regards the terms on which Her Majesty’s Government would be prepared to recapitalise HBOS standalone under your leadership.”
Part of the Government's £37bn bank bail-out package, Lloyds TSB and HBOS will receive £17bn to bolster the balance sheet on condition the two banks merge.
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