HBOS shareholders are to vote later today on the proposed takeover deal from Lloyds TSB.
The UK's biggest bank could be created today when HBOS shareholders meet in Birmingham to have their say on the merger with Lloyds TSB.
It is the final obstacle for the takeover, following government approval in October and a positive vote among Lloyds TSB shareholders in November. A legal challenge to the merger - backed by Sir Sean Connery - failed on Wednesday, after the Competition Appeal Tribunal approved the government's decision to let the deal go ahead.
Concerns had been raised that the so-called "superbank" which would be created would stifle competition. HBOS on its own is already the nation's biggest mortgage lender.
However, despite all obstacles to the deal being removed, the course still appears rocky. HBOS revealed that it had a writedown of £8 billion for the year up to and including November. The news caused its shares to drop by more than 12 percent in early trading.
"Global market and economic conditions, UK recession and increasing unemployment will continue to present a particularly challenging operating and credit environment," the mortgage lender said. "However, through the injection of capital and liquidity facilitated by the UK government, both currently and going forward, HBOS remains confident in its ability to navigate through this difficult period, as it becomes part of the enlarged Lloyds Banking Group."
