The HBOS takeover has been given the green light by Lloyds TSB stakeholders.
Shareholders of Lloyds TSB have voted in favour of the proposed takeover of Halifax Bank of Scotland (HBOS) by an overwhelming majority.
Almost 96 percent of those present at a meeting in Scotland backed the deal. This paves the way for a merger to go ahead early next year, provided HBOS shareholders signal their support for the plans next month.
Commenting on the outcome of the ballot, Sir Victor Blank, chairman of Lloyds TSB said: "Today's successful vote marks another important milestone in the proposed acquisition of HBOS to create the UK's leading financial services company. I am delighted that our shareholders have endorsed the compelling strategic logic for this transaction."
Shareholders also backed fundraising plans that will see the bank issue £4.5 billion worth of new shares to shareholders as well as £1 billion worth of preference shares to the government. HBOS is also planning similar fundraising efforts to strengthen its own balance sheet.
HBOS shareholders will vote on the merger plans on December 12th and, according to the Share Centre, they will have little choice but to support the deal. The HBOS board will need a 75 percent majority vote in favour of the deal in order for it to go ahead.
