How the BBC Affected The Forunes Of HBOS And Lloyds TSB
HBOS PLC, owners of the Halifax, and Lloyds TSB PLC are said toi be in advanced talks about a merger. We know this because the British Broadcasting Corp. says so.
Neither company would comment on what they called “market speculation.” BBC business editor Robert Peston said that the talks were “very advanced” and could be wrapped up this week.
A scoop? If so, a scoop in the financial markets that has not been confirmed. Which makes it a rumour. And rumours in the City can create problems, and fortunes.
Sentiment towards the stock lifted after the BBC reported on its Website that the troubled U.K. mortgage lender is in advanced talks to merge with Lloyds TSB.
You can read the City code on Take Overs here.
2.2 WHEN AN ANNOUNCEMENT IS REQUIRED
An announcement is required:—
… when, following an approach to the offeree company, the offeree company is the subject of rumour and speculation or there is an untoward movement in its share price…
HBOS, down as much as 52 percent earlier in the day, recovered after the British Broadcasting Corp. reported that Lloyds was considering a takeover. The shares were up 0.3 percent at 182.6 pence at noon in London.
The BBC says:
Our business editor said there was a real concern that any run on HBOS shares would create enough fear among the bank’s financiers - providers of wholesale credit who give the bank its money - for there to be a withdrawal of credit for HBOS.
“Clearly the watchdog and Treasury will welcome a deal as it will put the bank on a sounder footing,” he said.
“The last thing they want is a fully fledged crisis.”
“I am hearing that this deal has been negotiated at a very high pay grade level, with the Prime Minister, Gordon Brown, talking to Sir Victor Blank, chairman of Lloyds TSB, about how helpful it would be if Sir Victor could bring himself to end the uncertainty hanging over HBOS by buying it.”
And best hurry up. It’s getting more valuable by the minute…
Posted: 17th, September 2008 | In: Money, Overheard On The TV And Radio, TV & Radio Comments (6) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink
Comments
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September 18th, 2008 at 11:57 am
…it never went away….
September 17th, 2008 at 8:14 pm
Yes, Coco, I’m with you all the way!
With any luck we can even get Anokra to dig out his comments when the Government refused to let Lloyds do the deed with Abbey back in 2001.
Something about it being bad for competition and bad for the consumer, I vaguely recall the pols saying.
So, screw the consumer is once more in vogue…
September 17th, 2008 at 5:06 pm
Media controlling the police and - now the banking industry!
You just can’t beat the power of the British newsdesks!
So - the internet is lethal and wicked - and now the telly can be seen for what it is! A tool for the unwashed and well-heeled alike!
Never before has there been such a level playing field for us to fight from the underworld of the trenches, the beaches and errrrrr …… other
places ….. that errrrrr ……. we can attack from with all this knowledge! lol
September 17th, 2008 at 4:21 pm
Hooray for Howard Lloyds, tada tada tada tadada, Howard Lloyds…
September 17th, 2008 at 4:18 pm
The last thing they want is a fully fledged crisis? Errrrr
September 17th, 2008 at 2:55 pm
Gosh, the Beeb demonstrating once more that superb grasp of regulatory provisions:
Section 4,286, subsection 16 B,
‘but not if the Beeb does it’