12/01/2009
Taxpayers To Own Almost Half Of 'Super-Bank'
Taxpayers are set to own almost half of the "super-bank" created from Lloyd's TSB takeover of HBOS.
The Treasury were forced to purchase 43.3% of the newly named Lloyds Banking Group, after £13 billion new shares to strengthen the company's finances were snubbed by existing investors.
The deal is expected to gain court approval in Edinburgh later today.
HBOS said just 0.24% of the 7.5 billion shares it offered to raise £8.5 billion were taken up.
Lloyds TSB saw just 0.5% of its 2.6 billion new shares to raise £4.5 billion bought by existing investors.
Based on Friday's closing prices, the taxpayer is sitting on combined losses of around £3.5 billion on its stakes in both companies.
Lloyds TSB chief executive Eric Daniels said: "We are pleased that the capital-raising process has completed and that the new, combined group will have a strong financial position.
"We understand that many existing shareholders did not participate because of the divergence between the offer price and the current market price."
The Government is also a majority shareholder in stricken Royal Bank of Scotland - owning almost 60% of the bank.
(JM)(BMcC)
The Treasury were forced to purchase 43.3% of the newly named Lloyds Banking Group, after £13 billion new shares to strengthen the company's finances were snubbed by existing investors.
The deal is expected to gain court approval in Edinburgh later today.
HBOS said just 0.24% of the 7.5 billion shares it offered to raise £8.5 billion were taken up.
Lloyds TSB saw just 0.5% of its 2.6 billion new shares to raise £4.5 billion bought by existing investors.
Based on Friday's closing prices, the taxpayer is sitting on combined losses of around £3.5 billion on its stakes in both companies.
Lloyds TSB chief executive Eric Daniels said: "We are pleased that the capital-raising process has completed and that the new, combined group will have a strong financial position.
"We understand that many existing shareholders did not participate because of the divergence between the offer price and the current market price."
The Government is also a majority shareholder in stricken Royal Bank of Scotland - owning almost 60% of the bank.
(JM)(BMcC)
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Northern Ireland WeatherToday:After a dry start this morning rain will spread from the northwest across all parts. This afternoon will be dull with some patchy rain and drizzle. Becoming much milder through the afternoon. Maximum temperature 11 °C.Tonight:A cloudy evening and night with a little light rain or drizzle, perhaps some clear periods developing along the east coast. A very mild night everywhere. Minimum temperature 10 °C.