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HBOS shares surge on confidence over Lloyds deal
A woman walks past a Halifax bank in Leicester, central England, September 17, 2008.
Credit: Reuters/Darren Staples
LONDON |
LONDON (Reuters) - Shares in HBOS HBOS.L jumped 27 percent on Wednesday on growing confidence that a deal for it to be taken over by Lloyds TSB (LLOY.L) would go through, traders said.
A person close to investment firm Standard Life Investments, a top investor in Lloyds TSB and HBOS, told Reuters of support for the planned takeover of HBOS under the terms originally announced.
At 1126 GMT, HBOS shares were up 27 percent at 155.75 pence, while stock in Lloyds TSB was up 15 percent.
HBOS shares earlier traded at a big discount to the indicated offer price, reflecting concern the deal may not be approved by shareholders or would be revised by Lloyds.
"The share price has done pretty well since news Standard Life could be supportive of the deal. It is a relief to everyone. There has been debate that the price had to be recalculated," said a trader.
(Reporting by Joanne Frearson)
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