Govt may own 43.5% of Lloyds/HBOS 'superbank'

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UK taxpayers will own as much as 43.5% of the proposed Lloyds TSB and HBOS ‘superbank', under the new revised takeover terms.

Lloyds TSB has amended the details of its HBOS acquisition in light of the Government’s £37bn bank rescue plan, with HBOS shareholders now receiving 0.605 Lloyds TSB shares for every one share. Under the terms of the original deal unveiled on 18 September, HBOS shareholders were to receive 0.83 Lloyds shares for every one share. Lloyds will take on £5.5bn of new capital under today’s Government plan, while the Treasury will inject up to £11.5bn into HBOS. Current investors will have an option to pick up some of the new issues, but should both banks' shareholders not participate, Lloy...

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