HBOS chief warns of nationalisation risk if takeover rejected
Sunday, 16 November 2008
LONDON, Nov 15 (AFP): The chairman of beleaguered British bank HBOS warned yesterday that it might have to be nationalised if shareholders reject a takeover by its rival Lloyds TSB.
Dennis Stevenson said the bank could be left needing to raise at least 12 billion pounds (14 billion euros, 17.7 billion dollars) if investors throw out the deal at a meeting on December 12.
In a letter to shareholders, Stevenson said that if HBOS decided to go it alone, there was "no certainty" over sources of funding.
The bank could be forced to raise more costly funds from the Treasury, potentially resulting in "the loss of independent or private sector status for HBOS", Stevenson said.
Dennis Stevenson said the bank could be left needing to raise at least 12 billion pounds (14 billion euros, 17.7 billion dollars) if investors throw out the deal at a meeting on December 12.
In a letter to shareholders, Stevenson said that if HBOS decided to go it alone, there was "no certainty" over sources of funding.
The bank could be forced to raise more costly funds from the Treasury, potentially resulting in "the loss of independent or private sector status for HBOS", Stevenson said.