10th Nov 2008 07:00
The Board of HBOS wishes to release the following letter sent to Sir Peter Burt and Sir George Matthewson, in reply to their letter to the HBOS board dated 8th November, thereafter publicly released:
"Thank you for your letter of 8th November.
Our Board has now considered it. We note that it sets out some of your personal reservations about the transaction and makes it plain that you wish the Board of HBOS to abandon the takeover by Lloyds TSB, a transaction with very considerable benefits to HBOS shareholders, and appoint the two of you as Chairman and Chief Executive. Thereafter you would intend to develop an 'alternative plan'. You do not describe any specific aspect whatsoever of this plan. Nor do you set out a value proposition for shareholders, or address how your idea would provide certainty or stability for HBOS and its shareholders and customers. You provide no assurance as regards the terms on which HMG would be prepared to recapitalise HBOS standalone under your leadership.
As will be described in the Scheme Circular that we will send to shareholders in about a week's time, the Board did consider the possibility of HBOS continuing as a standalone entity but concluded, having taken advice, that the proposed takeover, with all of its benefits (some of which we were told by HMG were only available to HBOS shareholders if we proceeded with the deal as announced on 13 October) was in the best interests of shareholders. The Board remains of that view.
Accordingly, the Board has unanimously concluded that your letter does not form the basis for any further discussion between us."
Contacts
Investor Relations:
Charles Wycks
Director of Investor Relations
+44 (0)20 7905 9600
Press Office:
Shane O'Riordain
General Manager, Group Communications
+44 (0)131 243 7195
+44 (0)7770 544585 (mobile)
shaneo'[email protected]
Related Shares:
Lloyds