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HBOS chief defends takeover deal | HBOS chief defends takeover deal |
(31 minutes later) | |
HBOS chief executive Andy Hornby has said agreeing to the bank's takeover by Lloyds TSB was "the right thing to do". | HBOS chief executive Andy Hornby has said agreeing to the bank's takeover by Lloyds TSB was "the right thing to do". |
Mr Hornby wrote an e-mail to all the bank's staff in the wake of last week's "momentous developments" and "unprecedented turmoil". | Mr Hornby wrote an e-mail to all the bank's staff in the wake of last week's "momentous developments" and "unprecedented turmoil". |
While admitting the merger would lead to job losses, he insisted that most people would be able to stay within the enlarged group. | While admitting the merger would lead to job losses, he insisted that most people would be able to stay within the enlarged group. |
He said changes brought about by integration could take two years. | He said changes brought about by integration could take two years. |
Lloyds TSB announced last week it had agreed a £12.2bn takeover after shares in Edinburgh-based HBOS plummeted. | Lloyds TSB announced last week it had agreed a £12.2bn takeover after shares in Edinburgh-based HBOS plummeted. |
HBOS, formed from a merger of Halifax and the Bank of Scotland seven years ago, has about 17,000 staff in Scotland, while Lloyds TSB has more than 7,000 employees. | HBOS, formed from a merger of Halifax and the Bank of Scotland seven years ago, has about 17,000 staff in Scotland, while Lloyds TSB has more than 7,000 employees. |
In his letter, Mr Hornby said that he had been in talks with Eric Daniels, the chief executive of Lloyds TSB, for some time. | In his letter, Mr Hornby said that he had been in talks with Eric Daniels, the chief executive of Lloyds TSB, for some time. |
He said: "We have always recognised the benefits of combining these two businesses with their fantastic collection of brands. | He said: "We have always recognised the benefits of combining these two businesses with their fantastic collection of brands. |
"Those talks really accelerated, however, after the momentous developments in the last few days as the world has experienced literally unprecedented turmoil in financial markets." | "Those talks really accelerated, however, after the momentous developments in the last few days as the world has experienced literally unprecedented turmoil in financial markets." |
Possible impact | Possible impact |
Mr Hornby added: "We agreed to be purchased by Lloyds TSB because it is the right thing to do. | Mr Hornby added: "We agreed to be purchased by Lloyds TSB because it is the right thing to do. |
"It really is as simple as that. | "It really is as simple as that. |
"We had reached a point where the dramatic movements in our share price (caused by the completely unprecedented market context) were raising concerns amongst our customers." | "We had reached a point where the dramatic movements in our share price (caused by the completely unprecedented market context) were raising concerns amongst our customers." |
He said that HBOS was an "exceptionally well capitalised and profitable bank" but share price gyrations were causing "too much uncertainty". | He said that HBOS was an "exceptionally well capitalised and profitable bank" but share price gyrations were causing "too much uncertainty". |
Lloyds TSB has dismissed claims that up to 40,000 posts could be lost in the UK but has refused to rule out compulsory redundancies. | Lloyds TSB has dismissed claims that up to 40,000 posts could be lost in the UK but has refused to rule out compulsory redundancies. |
Mr Hornby said: "I know that many of you are naturally concerned about your job and the possible impact of the deal on you and your family. | Mr Hornby said: "I know that many of you are naturally concerned about your job and the possible impact of the deal on you and your family. |
"Rest assured that we will do everything we can to end the uncertainty for you as soon as we can. | "Rest assured that we will do everything we can to end the uncertainty for you as soon as we can. |
"Please remember though that the deal has just been announced so there is a lot of work to be done in the next few months." | "Please remember though that the deal has just been announced so there is a lot of work to be done in the next few months." |
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