HBOS/Lloyds approval beset by protests
HBOS shareholders approved the merger with Lloyds TSB today surrounded by rowdy protests from trade union Unite.
Demonstrators – primarily HBOS workers – were campaigning for staff rights.
“Months of unremitting speculation about the future of HBOS has left long-serving employees feeling insecure about their jobs in an organisation they are very faithful to,” said Unite general secretary Derek Simpson.
“It is vital that we focus on concrete proposals for the future of these banks.”
Protestors were wearing T-shirts saying: “Secure Jobs = Secure Bank” and handed out mock ballot papers to shareholders as they entered the general meeting.
They also asked questions inside the meeting on union recognition, proposed cost savings, off-shoring and pay.
Today’s merger creates the UK’s first superbank, with over 30 million customers.
Approval from HBOS shareholders was the last hurdle for the two banks to merge, as Lloyds TSB investors had already agreed and regulators had cleared the deal.
HBOS shareholders receive 0.605 Lloyds TSB shares for every one HBOS ordinary share and the combined banks will become Lloyds Banking Group by the end of January.
However, the deal has attracted controversy since it was announced in September.
Consumer groups are concerned the merger will restrict competition on the high street, while some shareholders believe the deal was struck at their expense.
The Merger Action Group (MAG), an organisation representing shareholders, businesses and politicians opposed to the deal, took legal action against the deal but yesterday dropped its claim.
MAG spokesperson Malcolm Fraser, an Edinburgh architect, said: “It is now up to shareholders to decide what is in the best interests of themselves, the banks and their staff and customers.”
Graham Spooner, investment adviser at The Share Centre, said: “As far as we are concerned, HBOS shareholders have no choice but to approve the vote. If the improbable were to happen there is no doubt HBOS’ shares would plummet.”
The new bank’s long term prospects appear brighter, Mr Spooner added, as it should benefit from greater market share.
Employees of both banks are also concerned as neither group has given any indication of how many jobs will go, but unions believe up to 40,000 jobs could be at risk.
Last night, HBOS shares closed 2.56 per cent down to 87.6p ahead of the meeting.
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